Myers Industries’ board of directors announced Monday that GS Capital Partners (GSCP) has requested more time to complete the acquisition of the colossal container manufacturer.
Based in Akron, Ohio, Myers produces plastic horticultural containers under the Dillen, ITML, Listo Products and Pro Cal brands.
In consideration for extending the closing date of the sale from Dec. 15 to April 30, 2008, GSCP has agreed to make a non-refundable payment to Myers of the previously agreed upon $35 million fee. GCSP has secured an extension of its debt financing commitments from Goldman Sachs Credit Partners and Key Bank and GSCP has agreed to contribute another $30 million of equity to the transaction.
GSCP has acknowledged there has been no material adverse change in Myers’ business and the deadline request resulted from its desire to further evaluate conditions in certain industries which Myers operates. In addition to horticulture, industries include automotive and consumer storage products.
“Both sides continue to work closely to complete this transaction,” says John Orr, president and CEO of Myers Industries. “In light of GSCP’s request for an extension, the board of directors determined it is in the best interest of Myers’ shareholders to preserve this opportunity.”
As part of the agreement to extend the closing deadline, Myers Industries will be free to respond to takeover proposals solicited or received from others during the extension period and will not be required to pay a termination fee to GSCP. The terms of the merger agreement remain unchanged, including GSCP’s agreement to acquire all of the outstanding common stock of Myers Industries for $22.50 per share in cash.