Diversified industrial company Hillenbrand has agreed to acquire US-based Milacron Holdings in a deal valued at around $2bn (£1.58bn).
Image: Hillenbrand has agreed to acquire Milacron Holdings. Photo: courtesy of Adam Radosavljevic from Pixabay.
Under the deal, Milacron stockholders will secure $11.80 (£9.37) in cash and a fixed exchange ratio of 0.1612 shares of Hillenbrand common stock for each share of Milacron.
The transaction amount of $2bn includes net debt of around $686m as of 31 March 2019.
Milacron is involved in the manufacturing, distribution and servicing of engineered and customised systems in the approximately $30bn (£23.84) plastics technology and processing industry. The company also provides fluid technologies and processing systems.
Milacron CEO Tom Goeke said: “After careful review, our Board unanimously concluded that a combination with Hillenbrand represents a unique opportunity to provide Milacron stockholders with significant and immediate value and the ability to benefit from the upside potential of the combined company.”
Milacron has three business segments, including Melt Delivery and Control Systems that designs and produces hot runner and process control systems, mould bases, and components.
The Advanced Plastics Processing Technologies designs and manufactures plastics processing equipment and systems, including injection moulding, extrusion, and auxiliary systems, while Fluid Technologies produces products that are used in different metalworking processes.
Following the completion of the deal, the combined company is expected to better serve end markets such as consumer packaging, medical, recycling, construction, automotive and electronics.
For packaging producers, Milacron provides part design, material, mould design, machine, hot runner and process control systems, as well as auxiliary equipment.
Milacron’s Uniloy Shuttle Series (UMS) single and double station blow moulding machines are used to manufacture bottles, containers, technical parts and jerry cans, while Uniloy Reciprocating Screw Series (UR) is used to produce lightweight monolayer and three layer containers.
The company’s products can be used in various applications, including thinwall containers, dairy, juice and water packaging, lids, food storage, beverage caps and closures, specialty closures, buckets, cosmetics and personal care.
Milacron Plastics’ material management equipment and systems are used in manufacturing of bulk storage and surge bins, vacuum loading systems, colour feeders and loaders and dryers.
Subject to customary closing conditions and regulatory approvals, the deal is expected to complete in the first calendar quarter of 2020.
Hillenbrand president and CEO Joe Raver said: “This transaction meaningfully transforms our portfolio and product offering by adding Milacron’s leading technology solutions and sizable installed customer base to help us drive long-term growth.”