(Batesville, IN) – Hillenbrand Inc. has announced plans to sell a 51 percent stake in its Cincinnati-based subsidiary Milacron LLC, to an affiliate of Boston-based investment firm Bain Capital.
Hillenbrand, which is based in Batesville, says the deal is valued at $287 million.
Hillenbrand acquired Milacron in 2019 for nearly $2 billion.
Milacron manufactures, distributes and services systems in the plastics technology and processing industry, and is part of the Hillenbrand’s Molding Technology Solutions (MTS) unit.
The company announced plans a year ago to implement a Cost Savings and Restructuring for the MTS unit due to weaker-than-expected performance at that time.
“We’ve significantly reshaped our portfolio toward less cyclical, higher-growth opportunities,” CEO Kim Ryan said. “We believe this transaction not only delivers value for Hillenbrand and our shareholders, but also Milacron and its customers, as they have a strong partner in Bain Capital to help drive their next phase of growth.”
Hillenbrand will keep a 49 percent ownership stake in Milacron as part of the deal.
Net proceeds from the sale after taxes are expected to total around $250 million. Hillenbrand plans to use that to pay down debt.
The sale is expected to close at the end of Hillenbrand’s fiscal second quarter or the beginning of its fiscal third quarter.
