Bain Capital has announced its majority investment in the Milacron Injection Moulding and Extrusion business. Hillenbrand, Inc., will remain a significant investor in the company but will now partner Bain Capital as the duo aim to accelerate the growth of the highly engineered plastics processing equipment and services provider.
Milacron
Bain Capital makes majority investment in Milacron.
As part of the deal, Bain Capital will purchase an ownership stake of 51% (approx.) for $287 million, subject to customary closing adjustments. This will leave Hillenbrand with a 49% (approx.) ownership stake. Bain Capital’s Special Situations team made the investment after the successful close of its second vintage of funds, which raised over $9 billion.
“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.”
Chris Sun, a Principal at Bain Capital Special Situations, added, “We are excited to partner with Mac Jones, the President of Milacron, and the entire Milacron team to support the next chapter of growth of one of the world’s premier plastics processing solutions businesses. Milacron combines industry-leading engineering and manufacturing capabilities with innovative technology to enable the production of essential products used daily in the U.S. and around the world. We share a common vision with Milacron’s associates, customers, and other partners to continue building on Milacron’s more than 50-year legacy to create an even stronger future ahead.”
“Following an in-depth portfolio review, we determined that Milacron would be best positioned for the future through this partnership with Bain Capital,” concluded Kim Ryan, Hillenbrand President & CEO. “Bain Capital has a proven track record of successful corporate partnerships and will provide greater resources to Milacron, which we believe will drive future growth and success for Milacron’s associates and customers, as well as for Hillenbrand’s shareholders.”
Expected to close at the end of Milacron’s fiscal second quarter or the beginning of the third, Deutsche Bank is serving as the exclusive financial advisor. Additionally, Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as Bain Capital’s legal advisor.
About Milacron
Milacron has been a provider of highly engineered plastic processing solutions, including injection moulding and extrusion equipment, since 1968. A recognised market leader in many end-markets like the automotive, construction, consumer goods, medical, and packaging industries, Milacron serves as a complete lifecycle partner with an extensive support network to help provide comprehensive aftermarket parts and services solutions.