Milacron Holdings Corp. announced that it is being acquired by Hillenbrand Inc. in a cash and stock transaction valued at USD2 billion, including net debt of approximately USD686 million. The move comes two months after Milacron announced the sale of its Uniloy Blow Molding business to Osgood Capital Group LLC and Cyprium Investment Partners for USD52 million.
The agreement, which has been approved by the Board of Directors of both companies, is expected to close in the first quarter of 2020 subject to customary closing conditions and regulatory approvals, including the approval of stockholders of Milacron.
Under the terms of the agreement, Milacron stockholders will receive USD11.80 in cash and a fixed exchange ratio of 0.1612 shares of Hillenbrand common stock for each share of Milacron common stock they own.
Hillenbrand intends to fund the cash portion of the transaction through debt financing and has secured a committed bridge financing facility led by J.P. Morgan.
Together, the combined company will have increased scale and meaningful product diversification, enhancing its ability to serve customers through complementary technologies across the plastics value chain, including plastic base resins production, compounding, processing both extruded and injection-molded products, and recycling. The combined company is expected to generate USD3 billion in annual revenue by 2021.
Milacron manufactures, distributes, and services engineered and customized systems in the approximately USD30 billion plastics technology and processing industry, as well as fluid technologies and processing systems. Milacron operates in three segments: Melt Delivery & Control Systems, which designs and manufactures highly engineered, technically advanced hot runner and process control systems, mold bases, and components; Advanced Plastics Processing Technologies, which designs and manufactures plastics processing equipment and systems, including injection molding, extrusion, and auxiliary systems; and Fluid Technologies, which manufactures products that are used in a variety of metalworking processes.
The transaction represents a pivotal step in Hillenbrand’s vision to become a world-class global diversified industrial company by adding new strategic businesses in hot runner systems and injection molding to Hillenbrand’s portfolio through Milacron’s leading brands, including Mold-Masters and Milacron injection molding.
Hillenbrand’s portfolio is composed of two business segments: the Process Equipment Group and Batesville. The Process Equipment Group businesses design, develop, manufacture and service highly engineered industrial equipment around the world. Batesville is a recognized leader in the death care industry in North America.