Myers Industries' $1.1 Billion Buyout Delayed

Rubber and plastic manufacturer said its acquisition by a private equity arm of investment bank Goldman Sachs Group Inc. is being delayed until April 30.

AKRON, Ohio (AP) β€” Rubber and plastic manufacturer Myers Industries Inc. on Monday said its $1.1 billion acquisition by a private equity arm of investment bank Goldman Sachs Group Inc. is being delayed until April 30.
 
GS Capital Partners requested more time to complete the acquisition ''to further evaluate conditions in certain industries in which Myers operates ... (and) acknowledged that there has been no material adverse change in Myers' business,'' according to a company release.
 
GS Capital has agreed to make a nonrefundable payment of $35 million to Myers for extending the closing date from Dec. 15 to April 30.
 
The delay also allows Myers to respond to takeover proposals solicited or received from others during the extension period, but the terms otherwise remain unchanged, including GS Capital's agreement to acquire all of Myers' outstanding common stock for $22.50 per share.
 
Myers shares fell $2.31, or 10.7 percent, to $19.25 in premarket trading.
 
The deal, under which GS Capital also will assume $276 million in debt, originally was expected to be complete in the third quarter, but the agreement allows the investment firm to determine the timing for the financing marketing period based on the credit markets, Myers said in September.
 
The credit markets have tightened since the deal was announced in April and since Myers shareholders approved it in July.
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