(Batesville, IN) – Hillenbrand, Inc. has announced that it has completed the previously announced sale of its majority interest in the Milacron injection molding and extrusion business (“Milacron”), within the Molding Technology Solutions segment, to Bain Capital for $287 million, subject to agreed closing adjustments.
Bain Capital now owns an approximate 51% share and has full operational control of Milacron, while Hillenbrand maintains an ownership stake of approximately 49%. Bain Capital will provide greater focus and resources to help Milacron drive future growth and success, and the partnership with Bain Capital enables Hillenbrand to preserve the opportunity for future returns from Milacron.
“This transaction reflects the continued transformation of Hillenbrand’s portfolio mix as a pure-play industrial company,” said Kim Ryan, President and Chief Executive Officer of Hillenbrand. “We are confident it will deliver value to Hillenbrand and our shareholders by enhancing our overall margin profile, while enabling us to concentrate on growing our core process and automation equipment for the food, pharmaceutical, and polymer end markets. This partnership with Bain Capital positions Milacron for continued growth and success.”
Following a strategic portfolio review, Hillenbrand announced its intention to sell a majority stake in Milacron. Hillenbrand acquired Milacron Holdings Corp. in 2019 in a transaction that included the Milacron injection molding and extrusion business, as well as Mold-Masters, DME, and Cimcool. Hillenbrand sold the Cimcool business in 2020 and retains ownership of the Mold-Masters and DME businesses.
“We look forward to supporting Milacron’s experienced management team as they continue to enhance the company’s global manufacturing and aftermarkets solutions and capture opportunities presented by emerging technology and wider industry tailwinds,” added Matt Evans, a Partner at Bain Capital. “Alongside our partners at Hillenbrand, we are excited to build on the company’s strong legacy and leadership position by providing Milacron with the necessary tools, technology, and resources needed to accelerate its next phase of growth.”
Following customary closing adjustments, Hillenbrand expects after-tax net proceeds of approximately $250 million, which will be used to pay down debt.
(Hillenbrand, Inc. press release)
