Myers Industries Completes Sale of Myers Tire Supply to Lion Equity Partners
Myers Industries, a manufacturer focused on engineered products designed to protect people, equipment and infrastructure, has completed the sale of its Myers Tire Supply (MTS) North America business to Lion Equity Partners, a Denver-based private equity firm specializing in corporate divestitures.
The transaction represents another important milestone in Myers Industries’ broader transformation strategy. By divesting Myers Tire Supply, the company is narrowing its operational focus and directing more attention and resources toward its core specialty engineered products businesses and growth opportunities in markets where it sees stronger long-term potential.
Under the terms of the completed agreement, Myers Industries will receive $30 million from the transaction. The final proceeds remain subject to customary post-closing adjustments related to cash, indebtedness, net working capital and transaction expenses. Myers said the definitive transaction agreement will be filed with the U.S. Securities and Exchange Commission as an exhibit to the company’s Current Report on Form 8-K.
The sale is expected to strengthen Myers Industries’ financial position while supporting its ongoing efforts to become a more focused manufacturer of engineered resin and composite products.
A Strategic Step in Myers Industries’ Transformation
The divestiture of Myers Tire Supply is part of Myers Industries’ Focused Transformation strategy, which is designed to position the company around its core manufacturing capabilities and markets with attractive growth opportunities.
Myers Industries has increasingly emphasized specialty engineered products made from resin and composite materials. These products serve a variety of demanding applications across critical infrastructure, industrial, consumer, food and beverage, and vehicle-related end markets.
By completing the MTS sale, Myers can concentrate its capital, management attention and other resources on these core operations. The company believes a more focused portfolio can create opportunities for improved operating performance, stronger growth and greater long-term shareholder value.
The transaction also provides Myers with additional financial flexibility. The $30 million in proceeds, subject to customary adjustments, gives the company additional resources as it continues executing its strategic priorities.
For manufacturers undergoing portfolio transformation, divesting businesses that are outside the company’s primary strategic focus can provide several potential benefits. These can include simplifying operations, improving capital allocation, strengthening the balance sheet and allowing leadership teams to dedicate more time to businesses that align closely with future growth plans.
Myers Industries’ latest transaction reflects that approach.
Myers Tire Supply’s Long History
Although Myers Tire Supply is leaving the Myers Industries portfolio, the company emphasized the significant contribution the business has made throughout its history.
MTS has developed a long-standing reputation in the tire service industry, building relationships with customers over many years through its products, distribution capabilities and customer service.
The business has served professionals in the tire and automotive service markets, providing products and equipment designed to support tire maintenance, repair and related service activities.
Its established customer relationships and recognized brand are among the assets that Lion Equity Partners will inherit as the new owner.
For Myers Industries, the sale represents the conclusion of an important chapter. For Lion Equity Partners, it marks the beginning of an opportunity to build on the foundation that MTS has established over decades.
CEO Highlights Importance of Transaction
Myers Industries President and CEO Aaron Schapper described the completed transaction as a significant point in the company’s transformation.
“The completion of this transaction is a defining step in our ongoing transformation,” Schapper said. He added that the company’s sharpened focus on its core specialty engineered products should put Myers in a stronger position to pursue long-term growth and create value for shareholders.
Schapper also acknowledged the contribution of Myers Tire Supply and its employees.
He said the company recognizes the important role MTS has played in Myers Industries’ history and expressed appreciation for the dedication of the MTS team. He also highlighted the trusted relationships employees have established with customers and colleagues across the Myers organization over the years.
According to Schapper, Myers Industries believes the tire supply business is positioned for its next stage of development under Lion Equity Partners.
The comments underline the company’s view that the divestiture is not simply a financial transaction but also a strategic realignment that can allow both organizations to pursue their respective objectives.
Lion Equity Partners Plans to Build on MTS Legacy
Lion Equity Partners is taking ownership of Myers Tire Supply at a time when the company is positioned to build on its established market presence.
Jim Levitas, Managing Partner at Lion Equity Partners, praised the history and reputation of MTS, emphasizing the company’s customer relationships and service-oriented approach.
“ Myer Tire Supply has built a highly trusted brand through decades of exceptional service and commitment to its customers,” Levitas said. He added that Lion Equity Partners is excited to work with the MTS team and support the company as it enters its next phase of growth.
The new ownership structure could give MTS an opportunity to pursue initiatives tailored specifically to the tire supply business.
As part of a larger public company, MTS operated within a diversified corporate portfolio. Under private-equity ownership, the business will have an owner whose focus is specifically directed toward its future development and value creation.
Lion Equity Partners specializes in corporate divestitures, making Myers Tire Supply a natural fit with the firm’s investment approach. The private equity firm focuses on acquiring businesses that have been separated or divested from larger organizations and then supporting their transition as independent companies.
Strengthening Myers’ Financial Position
One of the most significant benefits of the transaction for Myers Industries is the expected improvement in its financial flexibility.
The company will receive $30 million before adjustments associated with cash, debt, working capital and transaction-related expenses. The proceeds can support Myers Industries as it continues investing in its core operations and implementing its transformation strategy.
Financial flexibility is particularly important for manufacturers because capital is required for a wide range of initiatives. Companies may need to invest in new equipment, product development, automation, technology, manufacturing capacity, operational improvements and other growth initiatives.
By monetizing a business that is no longer central to its strategic direction, Myers Industries can redirect resources toward opportunities that more closely align with its long-term objectives.
The transaction may also simplify the company’s overall business portfolio. A more concentrated operating structure can allow management to focus on improving performance across the remaining businesses while identifying additional opportunities for expansion.
Focus on Engineered Resin and Composite Products
At the center of Myers Industries’ transformation is its focus on engineered resin and composite products.
These materials can be used in applications where customers require products that provide durability, performance, protection and reliability. Myers Industries serves customers across several end markets, including critical infrastructure, industrial applications, consumer products, food and beverage operations and vehicle-related markets.
The company’s strategy is intended to position these businesses for sustainable growth by leveraging manufacturing expertise and developing products that address specific customer requirements.
The move away from Myers Tire Supply allows the company to further concentrate on these capabilities.
Instead of managing a diversified portfolio that includes tire-related distribution activities, Myers Industries can dedicate more resources to its manufacturing platforms.
That distinction is important because manufacturing and distribution businesses can have different operational characteristics, capital requirements and growth drivers. By focusing its portfolio, Myers can potentially create a more consistent business model centered on engineered products.
Implications for Customers and Employees
For Myers Tire Supply customers, the change in ownership is expected to provide continuity while creating opportunities for future investment.
Lion Equity Partners has indicated that it intends to work with the existing MTS team and build on the brand’s reputation. The company’s established customer relationships and decades of industry experience provide a strong foundation for the next stage.
Employees also represent an important component of the business’s value. MTS’s market knowledge, customer relationships and operational experience have been developed over many years.
The transition therefore allows Lion Equity Partners to acquire not only a recognized business but also a team with significant industry expertise.
For Myers Industries, meanwhile, the divestiture enables management to concentrate on the remaining businesses and their employees as the company continues its strategic transformation.
Advisors Supported the Transaction
Myers Industries received financial and legal support during the sale process.
KeyBanc served as the company’s exclusive financial adviser for the transaction. Vorys, Sater, Seymour and Pease, LLP, served as Myers Industries’ exclusive legal adviser.
The involvement of experienced financial and legal advisers is common in corporate divestitures, helping companies evaluate transaction terms, negotiate agreements and navigate the regulatory and legal requirements associated with the sale.
Myers Industries said the definitive transaction agreement will be submitted to the Securities and Exchange Commission as an exhibit to its Current Report on Form 8-K, providing additional details regarding the completed transaction.
What the Sale Means for Myers Industries
The completion of the Myers Tire Supply sale marks a meaningful change in the composition of Myers Industries.
The company is moving toward a more focused portfolio centered on specialty engineered products and the markets it considers strategically important.
This strategy could allow Myers to pursue growth opportunities more aggressively while improving the efficiency of its capital allocation. It also gives the company a clearer identity as a manufacturer of engineered resin and composite products serving a broad range of critical applications.
For shareholders, the transaction provides an immediate source of proceeds while supporting the company’s broader transformation plan. The longer-term impact will depend on how effectively Myers deploys its resources and executes its strategy across the remaining businesses.
At the same time, the transaction gives Myers Tire Supply a new ownership structure under Lion Equity Partners. The private equity firm will have the opportunity to build on MTS’s established reputation, strengthen its operations and pursue new growth opportunities in the tire service market.
The sale of Myers Tire Supply demonstrates Myers Industries’ willingness to reshape its portfolio as it works toward its long-term strategic objectives.
Rather than maintaining every business within its historical portfolio, Myers is prioritizing operations that fit its vision for a focused engineered-products manufacturer.
The $30 million transaction proceeds provide additional financial resources, while the removal of MTS from the portfolio should allow management to concentrate more closely on the company’s core manufacturing platforms.
For Lion Equity Partners, the acquisition creates an opportunity to support a well-established business with a recognizable brand, experienced employees and long-standing customer relationships.
As both companies move forward, the transaction will represent different opportunities for each organization. Myers Industries can continue its transformation around engineered resin and composite products, while Myers Tire Supply begins its next chapter as an independent business under Lion Equity Partners.
Ultimately, the completed sale reflects a broader trend among industrial companies toward portfolio optimization. Businesses are increasingly evaluating which operations best fit their long-term strategies and divesting non-core assets to create more focused organizations.
For Myers Industries, the completion of the Myers Tire Supply transaction is therefore more than a change in ownership. It is a strategic step designed to simplify the company’s portfolio, strengthen its financial position and place greater emphasis on the engineered products businesses that management believes can drive future growth and shareholder value.
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