Goldman kills $1bn Myers deal

Goldman Sachs’ private equity arm and Myers Industries have agreed to terminate their merger agreement, months after Goldman paid a $35m fee to extend its closing.

GS Capital Partners (GSCP) and Myers Industries have agreed to terminate their $1 billion (€635 million) deal to take private the Ohio-based polymer manufacturer. The deal, struck in April 2007, consisted of $788 million in cash, or $22.50 per share, and debt assumption of approximately $276 million.

In December, GSCP requested an extension of the deal’s close to further evaluate Myers’ exposure to certain industries. In return, GSCP agreed to make a non-refundable payment to Myers of the previously agreed upon $35 million termination fee. Myers’ head of investor relations, Max Barton, said GSCP is not required to pay any additional fees for terminating the deal.

Myers, which produces and distributes products for the industrial, agricultural, and automotive sectors, has a current market capitalisation of $444 million. Barton said it is not pursuing other potential private equity bids.

“We’re going forward, business as usual, confident in our market and our brands,” he said.

On word of the failed acquisition, Myers’ shares fell 7.9 percent to $12.66 per share.

Goldman Sachs declined comment.