Hillenbrand Completes Sale of Majority Stake in Milacron Injection Molding and Extrusion Business
Hillenbrand (NYSE: HI) has completed the sale of its majority stake (51%) in the Milacron injection molding and extrusion business to Bain Capital for $287 million. Hillenbrand retains a 49% ownership stake in the business. The transaction's after-tax net proceeds of approximately $250 million will be used to reduce debt.
The deal is part of Hillenbrand's strategic transformation into a pure-play industrial company, focusing on process and automation equipment for food, pharmaceutical, and polymer end markets. The partnership with Bain Capital aims to provide Milacron with additional resources and focus for future growth while allowing Hillenbrand to maintain potential future returns.
This transaction follows Hillenbrand's 2019 acquisition of Milacron Holdings Corp., which included Mold-Masters, DME, and Cimcool businesses. While Cimcool was sold in 2020, Hillenbrand continues to own Mold-Masters and DME businesses.
Hillenbrand (NYSE: HI) ha completato la vendita della sua partecipazione di maggioranza (51%) nel business di stampaggio ad iniezione e estrusione di Milacron a Bain Capital per 287 milioni di dollari. Hillenbrand mantiene una partecipazione del 49% nel business. I proventi netti dopo le tasse dell'operazione, pari a circa 250 milioni di dollari, saranno utilizzati per ridurre il debito.
L'accordo fa parte della trasformazione strategica di Hillenbrand in una società industriale pura, focalizzandosi su attrezzature per processi e automazione per i mercati finali alimentare, farmaceutico e dei polimeri. La partnership con Bain Capital mira a fornire a Milacron ulteriori risorse e attenzione per la crescita futura, consentendo a Hillenbrand di mantenere potenziali ritorni futuri.
Questa transazione segue l'acquisizione da parte di Hillenbrand di Milacron Holdings Corp. nel 2019, che includeva le attività di Mold-Masters, DME e Cimcool. Sebbene Cimcool sia stata venduta nel 2020, Hillenbrand continua a possedere le attività di Mold-Masters e DME.
Hillenbrand (NYSE: HI) ha completado la venta de su participación mayoritaria (51%) en el negocio de moldeo por inyección y extrusión de Milacron a Bain Capital por 287 millones de dólares. Hillenbrand retiene una participación del 49% en el negocio. Los ingresos netos después de impuestos de la transacción, aproximadamente 250 millones de dólares, se utilizarán para reducir la deuda.
El acuerdo es parte de la transformación estratégica de Hillenbrand en una empresa industrial pura, centrada en equipos de proceso y automatización para los mercados finales de alimentos, farmacéuticos y polímeros. La asociación con Bain Capital tiene como objetivo proporcionar a Milacron recursos adicionales y enfoque para el crecimiento futuro, mientras permite a Hillenbrand mantener posibles retornos futuros.
Esta transacción sigue a la adquisición de Milacron Holdings Corp. por parte de Hillenbrand en 2019, que incluía las empresas Mold-Masters, DME y Cimcool. Aunque Cimcool se vendió en 2020, Hillenbrand sigue siendo propietaria de las empresas Mold-Masters y DME.
힐렌브랜드 (NYSE: HI)는 베인 캐피탈에 밀라크론 사출 성형 및 압출 사업의 지분 51%를 2억 8,700만 달러에 매각했다고 발표했습니다. 힐렌브랜드는 이 사업의 49% 지분을 유지합니다. 이번 거래의 세후 순수익 약 2억 5천만 달러는 부채를 줄이는 데 사용될 예정입니다.
이번 거래는 힐렌브랜드가 식품, 제약 및 폴리머 최종 시장을 위한 공정 및 자동화 장비에 집중하는 순수 산업 회사로의 전략적 변화를 이루기 위한 일환입니다. 베인 캐피탈과의 파트너십은 밀라크론이 향후 성장에 필요한 추가 자원과 초점을 제공받을 수 있도록 하며, 힐렌브랜드가 향후 잠재적 수익을 유지할 수 있도록 합니다.
이번 거래는 힐렌브랜드가 2019년에 밀라크론 홀딩스 Corp.를 인수한 이후 이루어진 것으로, 이 인수에는 몰드-마스터스, DME 및 심쿨 사업이 포함되었습니다. 심쿨은 2020년에 매각되었지만, 힐렌브랜드는 여전히 몰드-마스터스 및 DME 사업을 소유하고 있습니다.
Hillenbrand (NYSE: HI) a finalisé la vente de sa participation majoritaire (51%) dans l'activité de moulage par injection et d'extrusion de Milacron à Bain Capital pour 287 millions de dollars. Hillenbrand conserve une participation de 49% dans l'entreprise. Le produit net après impôts de la transaction, d'environ 250 millions de dollars, sera utilisé pour réduire la dette.
L'accord fait partie de la transformation stratégique de Hillenbrand en une entreprise industrielle pure, axée sur l'équipement de processus et d'automatisation pour les marchés finaux de l'alimentation, de la pharmacie et des polymères. Le partenariat avec Bain Capital vise à fournir à Milacron des ressources supplémentaires et un focus pour une croissance future, tout en permettant à Hillenbrand de maintenir des retours potentiels futurs.
Cette transaction fait suite à l'acquisition par Hillenbrand de Milacron Holdings Corp. en 2019, qui comprenait les entreprises Mold-Masters, DME et Cimcool. Bien que Cimcool ait été vendu en 2020, Hillenbrand continue de posséder les entreprises Mold-Masters et DME.
Hillenbrand (NYSE: HI) hat den Verkauf seiner Mehrheitsbeteiligung (51%) am Spritzguss- und Extrusionsgeschäft von Milacron an Bain Capital für 287 Millionen Dollar abgeschlossen. Hillenbrand behält eine Beteiligung von 49% an dem Geschäft. Die nach Steuern erzielten Nettoerlöse aus der Transaktion von etwa 250 Millionen Dollar werden verwendet, um die Schulden zu reduzieren.
Der Deal ist Teil von Hillenbrands strategischer Transformation zu einem reinen Industrieunternehmen, das sich auf Prozess- und Automatisierungstechnik für die Endmärkte Lebensmittel, Pharma und Polymere konzentriert. Die Partnerschaft mit Bain Capital zielt darauf ab, Milacron zusätzliche Ressourcen und Fokus für zukünftiges Wachstum zu bieten, während Hillenbrand potenzielle zukünftige Erträge beibehalten kann.
Diese Transaktion folgt auf die Übernahme von Milacron Holdings Corp. durch Hillenbrand im Jahr 2019, die die Unternehmen Mold-Masters, DME und Cimcool umfasste. Während Cimcool 2020 verkauft wurde, besitzt Hillenbrand weiterhin die Unternehmen Mold-Masters und DME.
- Expected after-tax proceeds of $250 million to reduce debt
- Retains 49% ownership stake for potential future returns
- Strategic transformation to enhance overall margin profile
- Maintains exposure to Milacron's growth while reducing operational risk
- Loss of operational control over Milacron business
- Reduction in revenue stream from decreased ownership stake
- Potential dilution of future earnings from reduced Milacron exposure
Insights
Hillenbrand's $287 million sale of a 51% stake in its Milacron injection molding business to Bain Capital represents a significant strategic shift with positive financial implications. The transaction will yield approximately
This divestiture accomplishes several strategic objectives simultaneously. First, it streamlines Hillenbrand's business model toward becoming a pure-play industrial company focused on higher-margin core operations in food, pharmaceutical, and polymer equipment. Second, by maintaining a 49% ownership stake, Hillenbrand preserves upside potential without operational responsibility.
The transaction effectively completes Hillenbrand's portfolio reorganization following its 2019 Milacron Holdings acquisition. The company strategically retained the Mold-Masters and DME businesses while divesting Cimcool in 2020 and now reducing exposure to the injection molding segment.
This asset monetization appears well-timed, providing immediate debt reduction benefits while partnering with a private equity firm known for operational improvements. The deal structure suggests management confidence in Milacron's future prospects under Bain's stewardship, as evidenced by their willingness to maintain substantial minority ownership rather than pursuing a complete exit.
- Bain Capital now majority owner of Milacron
- Transaction enhances Hillenbrand's focus on core business
- Net proceeds to be used to reduce debt
Bain Capital now owns an approximate
"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
About Hillenbrand
Hillenbrand (NYSE: HI) is a global industrial company that provides highly-engineered, mission-critical processing equipment and solutions to customers around the world. Our portfolio is composed of leading industrial brands that serve large, attractive end markets, including durable plastics, food, and recycling. Guided by our Purpose — Shape What Matters For Tomorrow™ — we pursue excellence, collaboration, and innovation to consistently shape solutions that best serve our people, our customers, and our communities. To learn more, visit: www.Hillenbrand.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements that are within the meaning of the Private Securities Litigation Reform Act of 1995 that are intended to be covered by the safe harbor provided thereunder, which reflect the current views of Bain Capital and Hillenbrand regarding future events, expectations, plans, and prospects for Milacron following the announced transaction. These statements are based on assumptions and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied in such statements.
Forward-looking statements include, but are not limited to, statements regarding: the expected benefits of the transaction; Milacron's future growth, market position, and business strategy; anticipated industry trends, including implications with respect to growing supply chain resilience and domestic manufacturing.
Any number of factors, many of which are beyond Hillenbrand and Bain Capital's control, could cause Hillenbrand and Bain Capital's performance to differ significantly from what is described in the forward-looking statements. These factors include, but are not limited to: the ability to recognize the benefits of the divestiture, of the Milacron injection molding and extrusion business sale (the "Transaction"), including potential synergies and cost savings or the failure of Hillenbrand and Bain Capital, or the Transaction, to achieve its plans and objectives generally; any strategic and operational initiatives implemented by Bain Capital after the consummation of the Transaction; any failure by the parties to satisfy any conditions to the Transaction; potential adverse effects of the announcement or results of the Transaction on the market price of the Hillenbrand's common stock; and risks related to diversion of management's attention from Hillenbrand's ongoing business operations due to the Transaction.
Readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For a more in-depth discussion of certain factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions in Hillenbrand's filings with the
The forward-looking information in this release speaks only as of the date on which it is made. Hillenbrand and Bain Capital undertake no obligation to publicly update or revise any forward-looking statement, whether written or oral, made to reflect new information, future developments or otherwise.
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SOURCE Hillenbrand
FAQ
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