Myers Industries Closes Major Strategic Expansion with Signature Systems Acquisition

Myers Industries has sealed a transformative deal that marks a significant pivot in its business strategy. The industrial products manufacturer is acquiring Signature Systems Group, a specialist in composite ground protection solutions, for approximately $350 million—a move that signals the company’s ambition to diversify beyond its traditional product lines.

The Deal: What Changed

The transaction represents more than a typical acquisition. Signature Systems Group, headquartered in Flower Mound, Texas, brought in approximately $122 million in revenue during 2023, with operating income of $24 million and Adjusted EBITDA of $44 million. The company manufactures high-performance composite matting systems for industrial applications, stadium turf protection, and temporary event flooring—markets that Myers Industries identified as growth vectors.

The financing structure relies on a new $350 million credit facility, with the company maintaining its strategic leverage target of approximately 3x net leverage at closing, expected to decline below 2x within two years through combined free cash flow generation.

Why This Matters: The Financial Timeline

The earnings impact reveals carefully calibrated expectations. In 2024, Myers expects the deal to be neutral to slightly dilutive on US GAAP earnings per share. However, the trajectory shifts materially:

• 2025 projection: $0.20–$0.30 per share accretion
• 2026 projection: $0.40–$0.50 per share accretion
• Beyond 2026: Additional meaningful EPS accretion anticipated

The $8 million in annualized operational and cost synergies will be fully captured by 2025, providing tangible proof points for the strategic thesis underlying the acquisition.

Strategic Positioning: Moving to Horizon Two

Myers Industries CEO Mike McGaugh characterized this acquisition as essential to the company’s transformation roadmap. The deal advances Myers from Horizon 1 to Horizon 2 in its three-horizon strategic framework—effectively reshaping the company’s growth trajectory for the next decade.

Signature Systems Group’s complementary product portfolio strengthens Myers’ traditional advantage in free cash flow generation while immediately improving the combined entity’s profitability profile. The acquisition pairs well with infrastructure tailwinds expected to drive sustained demand for composite ground protection solutions as markets transition from legacy wood-based products to engineered composite matting systems.

Market Positioning and Growth Platform

The combination creates a more robust platform for long-term expansion. Signature Systems Group operates manufacturing facilities in Orlando, Florida, and maintains global distribution capabilities. Its branded portfolio—including MegaDeck®, SignaRoad®, DuraDeck®, OmniDeck®, ArmorDeck®, and EventDeck®—addresses high-margin applications across industrial, sports, and events sectors.

Myers targeted acquisitions matching specific criteria: established market leadership, differentiated branded products, exposure to secular growth markets, and strong cash generation characteristics. Signature Systems Group satisfied all parameters, with an established track record and favorable sustainability profile.

What Comes Next

The transaction was expected to close in the first quarter of 2024. Myers indicated plans to disclose full-year 2023 pro-forma financial results for the combined entity during Q1 2024, with a comprehensive investor presentation scheduled for March 2024 in New York City to detail the repositioned company’s long-term strategy and revised financial guidance.

The acquisition aligns both organizations’ visions: Myers gains a high-margin business with structured growth dynamics, while Signature Systems Group joins a larger entity equipped to accelerate market penetration and operational excellence initiatives across its product suite.