GAMCO Charts Path to $1.3 Billion Valuation for Myers Industries (MYE)

M.Cap: $458mm | Myers Industries manufactures a diverse range of polymer products for industrial, agricultural, automotive, commercial and consumer markets.

On December 13, 2024, GAMCO (14.5%) sent a presentation to directors of the company, reflecting its thoughts on surfacing value within the company’s portfolio, focusing on the recent acquisition of Signature Systems. The presentation highlighted Signature's strong financials, including a 36% EBITDA margin and $44 million EBITDA on $120 million in sales, and its significant market share in the rapidly growing North American composite matting market. GAMCO suggested that this strategic move could nearly double Myers' enterprise value to approximately $1.3 billion by 2027, emphasizing the potential for higher valuation multiples for the Material Handling segment's Storage, Handling & Protection division, which boasts a 30% EBITDA margin.

Past

Gamco

Gamco Asset Management faced repeated defeats in four consecutive elections prior to the 2013 AGM but secured one board seat through a settlement agreement that year, holding 15.73% of the company's shares. In November 2014, with a 20.63% stake, Gamco proposed the company refrain from transactions until the sale of its Lawn & Garden Segment and a 50% cash flow return to shareholders, which was completed in February 2015. Subsequently, Gamco nominated three board candidates, all elected in April 2015. By 2016, Gamco increased its stake to 23.58% and negotiated to add another board candidate. However, by November 2020, Gamco reduced its stake to 16.73%.

Premier Investments

In October 2017, Premier Investments criticized the company’s Board, highlighting a 74% share price decline since 2013, and called for its replacement. By February 2018, holding a 10.8% stake, Premier urged shareholders to support appointing a new, majority-independent Board to save the company. In March 2018, Premier reiterated its call for Board replacement and proposed three nominees. On May 24, 2018, Premier issued a sharp rebuttal to Myer’s claims of obstruction, listing concerns such as potential write-downs, debt covenant breaches, canceled dividends, and underperformance of the Sass & Bide brand.