Myers Industries completes $30M sale of MTS
Myers Industries completes $30M sale of MTS
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Key Points
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The 8-K filing lists the Group Companies being divested as Myers Tire Supply (MTS) and its North American subsidiaries, including Myers Tire Supply Distribution, LLC; DSS Direct, LLC; and MyersTireSupply.com, LLC.
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Terms with Lion Equity Partners include customary post-closing adjustments for cash, indebtedness, net working capital, and transaction expenses, along with buyer-side warranty insurance and a 36-month non-compete and non-solicitation covenants with carve-outs for international operations.
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Executives emphasized the strategic rationale: Aaron Schapper said, 'The completion of this transaction is a defining step in our ongoing transformation. By sharpening our focus on our core specialty engineered products, we are better positioned to drive long-term growth and create value for our shareholders,' while Jim Levitas of Lion Equity Partners noted, 'Myers Tire Supply has built a highly trusted brand through decades of exceptional service and commitment to its customers.'
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Analysts from TipRanks’ Spark AI describe MYE as Neutral, citing improving profitability and free cash flow but still-elevated leverage and earlier top-line softness, with a neutral-to-mildly constructive technical outlook.
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Lion Equity Partners is a Denver-based private equity firm; the Lion deal is positioned to support Myers Tire Supply’s next growth phase under private equity ownership.
Myers Industries completed the sale of its Myers Tire Supply business for $30 million to Lion Equity Partners, marking a major step in the company's strategic shift away from tire distribution citybiz.co. In a separate transaction, Myers also sold related subsidiaries to TAPS Holdings for $30 million tradingview.com. Both deals include buyer-side warranty insurance and 36-month non-compete agreements, freeing Myers to focus on its core engineered resin and composite products for critical infrastructure.
The divestiture strengthens Myers' balance sheet and releases capital for growth in higher-margin specialty products tipranks.com. Aaron Schapper, Myers' executive, called the completion 'a defining step in our ongoing transformation.' The move reflects the company's long-term plan to concentrate on engineered products rather than tire supply distribution.
What Assets Changed Hands
The sale included Myers Tire Supply Distribution, LLC; DSS Direct, LLC; and MyersTireSupply.com, LLC citybiz.co. These subsidiaries form the core of Myers' North American tire supply operations. The transaction separates the entire tire distribution business from Myers' portfolio, allowing the parent company to exit a lower-margin segment completely.
Deal Structure Protects Both Sides
Both sales included customary post-closing adjustments for cash, debt, and working capital tipranks.com. Lion Equity Partners and TAPS Holdings each received warranty insurance to protect against hidden liabilities. Myers committed to a 36-month non-compete and non-solicitation agreement with carve-outs for international operations, preventing quick re-entry into the tire market.
Private Equity Eyes Growth Opportunity
Jim Levitas of Lion Equity Partners praised the acquisition: 'Myers Tire Supply has built a highly trusted brand through decades of exceptional service and commitment to its customers citybiz.co.' The Denver-based firm specializes in acquiring established businesses with strong customer bases. Lion now positions Myers Tire Supply for its next growth phase under private equity ownership.
Myers Sharpens Focus on Core Products
Myers Industries now concentrates exclusively on engineered resin and composite products for critical infrastructure and related markets kalkinemedia.com. The company eliminated a business segment that faced earlier top-line softness and lower margins. Analysts from TipRanks describe Myers as Neutral overall, citing improving profitability and free cash flow but still-elevated leverage tipranks.com.
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