Filed under: GS Capital Partners, Private equity industry, Public or private?
If you look over “at-risk” mergers, the acquisition of Myers Industries, Inc. (NYSE: MYE) looked about as hopeful as waiting for the Titanic to pull into port. This merger was announced nearly one-year ago as a $1.1billion deal, and the market cap is $478 million.
The company has announced this morning that it has received notice that GS Capital Partners, the private equity arm of Goldman Sachs (NYSE: GS), does not intend to proceed with the proposed acquisition of Myers. As a result, Myers Holdings and GS Capital have mutually agreed to terminate their merger agreement, with an effective date of April 3, 2008.
After looking back over its past earnings release, it appears that raw materials costs are probably part of the problem for the rubber and plastics maker. Myers had also received a $35 million payment from GS Capital Partners to extend the merger date to April 30.
Myers Industries continues to focus on its sound business growth plan and fundamentals directed at sustainable, profitable growth. The company noted it “is confident in its capability to continue value generation for customers and shareholders.”
The buyout price was originally set at $22.50, and shares shut on Thursday at $13.60. The 52-week trading range was $9.73 to $22.73, so this one was fairly well telegraphed that it was a goner. About the only hope here was that a lower buyout would come. Hoping in the same sentence as investing is generally one of the worst investment policies out there.
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