Myers Industries Inc. today announced that it is closing its distribution segment’s Canadian branches, which operate under the name Myers Tire Supply International.

Todd Smith, vice president and general manager of the distribution segment said, “We value the contributions made by our employees, and the decision to close the branches is not a reflection of their efforts, but rather the need to transition out of a business model that has not been profitable for us.”

The closures include three branches located in the provinces of Quebec, Ontario and Alberta. Approximately 25 employees will be affected. Pre-tax cash costs for the closures will be approximately $1 million and 75% of the costs will be recorded in the first half of 2014. Any future Canadian sales will be serviced from the U.S. distribution network.

Although the annual impact to profits is expected to be negligible, sales in the distribution segment are forecasted to decrease by approximately $7.5 million, thereby increasing the segment’s return on sales as a result of the closures.