By Lynne Sherwin
Hillenbrand announced on Wednesday that it has entered into an agreement to sell a 51 percent ownership stake in Milacron to an affiliate of Bain Capital for $287 million.
“The agreement to divest a majority stake in the Milacron business reflects the continuation of Hillenbrand's transformation as we've significantly reshaped our portfolio toward less cyclical, higher-growth opportunities. ... 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," said Kim Ryan, president and CEO of Hillenbrand.
“Milacron is an iconic American manufacturing business with a 50-year legacy of driving innovation in plastics,” said Matt Evans, a partner at Bain Capital Special Situations. “With manufacturers increasingly focused on supply-chain resilience and domestic production, we believe the U.S. is entering a manufacturing renaissance that will create significant opportunities for industry leaders like Milacron. With its advanced engineering capabilities, global reach, and deep customer relationships, Milacron is well-positioned to build on its strong foundation.”
Hillenbrand reported that its fiscal first quarter revenue of $707 million decreased 9 percent compared to the prior year, which it said was “in line with company expectations.”
Hillenbrand acquired Milacron in July 2019 in a cash and stock deal valued at approximately $2 billion. That acquisition included Melt Delivery and Control Systems, which makes hot runner and process control systems, mold bases and components under the Mold-Masters, DME and Tirad brands; and Fluid Technologies, with its Cimcool product line of fluids for metalworking. Hillenbrand still owns Mold-Masters, DME and Tirad; Cimcool was sold in 2020.
Milacron manufactures injection molding and extrusion equipment at its facility in Batavia, Ohio, and in India. In fiscal year 2024, Milacron generated $526 million in revenue and $64 million in adjusted EBITDA, according to a Hillenbrand news release.
Milacron is part of the company’s Molding Technology Solutions segment, along with Mold-Masters, DME and Tirad. The Advanced Process Solutions segment includes Herbold Meckesheim and Coperion, which recently announced that its Coperion K-Tron plant in Salina, Kan., would close, with the loss of 98 jobs.
Lynne Sherwin | Managing Editor
Managing editor Lynne Sherwin handles day-to-day operations and coordinates production of Plastics Machinery & Manufacturing’s print magazine, website and social media presence, as well as Plastics Recycling and The Journal of Blow Molding. She also writes features, including the annual machinery buying survey. She has more than 30 years of experience in daily and magazine journalism.
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