This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Deal Worries Mash Myers Industries

Shares of Myers Industries (MYE) plunged 24% Monday after Goldman Sachs (GS) delayed closing its buyout of the polymer-products maker.

Goldman Sachs Capital Partners, the private-equity arm of the investment banking behemoth, extended the closing deadline of the Myers acquisition to April 30. Previously, the transaction was slated to close Dec. 15.

As a result of the delay, Goldman agreed to pay Myers $35 million.

According to Myers, Goldman said there has been no material adverse change in the company's business. Rather, the deadline extension resulted from Goldman's desire to "further evaluate conditions in certain industries in which Myers operates."

The delay comes as big buyouts from private-equity players have been falling apart as the credit market tightens.

United Rentals (URI) and Sallie Mae (SLM) are in legal battles to force their acquirers to complete buyouts, while Harman (HAR) and Acxiom (ACXM) have seen their deals completely pulled. Meanwhile, Myers' customers in the industrial and automotive industries are being squeezed by the housing-market downturn.

For its part, Myers said "both sides continue to work closely to complete this transaction."

The company said, though, that it is now free to evaluate other takeover proposals during the extended buyout period, and it won't have to pay a termination fee if it finds another buyer. The Goldman deal called for Myers to be acquired for $22.50 a share.

The stock recently was trading at $16.45, down $5.11.

Myers also said it plans to pay a special dividend of 28 cents a share, and it will lift its regular quarterly payout to 6 cents from 5.25 cents.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs