Mumbai: GS Capital Partners, the private-equity arm of Goldman Sachs Group, has  abandoned its $788 million buyout offer for rubber and polymer maker Myers Industries Inc, amid a crisis in credit markets that has made leveraged financing difficult.

Akron, Ohio-based Myers, which makes polymer for the automotive, agricultural and consumer products industries, issued a statement that the Goldman Sachs' private equity arm won't pursue the $22.50 per share deal they had reached in April last year.

By November there were signs the deal was in trouble, after Myers stock dipped below $18 a share, or more than 25 per cent below their value in the GS Capital deal.

The transaction was due to close on December 15, but days before that deadline, Myers agreed to extend the buyout agreement through April to allow GS Capital Partners more time to assess its target's prospects.

Under the amended agreement, GS Capital Partners paid a $35 million termination fee when the extension was granted and agreed to boost its equity outlay if the deal went forward. There will now be no penalty for GS Capital Partners exiting the deal now.

Myers said it will continue to "focus on its sound business growth plan and fundamentals directed at sustainable, profitable growth."