Hillenbrand Offloads Majority Stake in Milacron to Bain Capital, Focusing on Core Business

Hillenbrand Completes Sale of Majority Stake in Milacron Injection Molding and Extrusion Business

Hillenbrand, Inc. has finalized its previously announced transaction to sell a majority interest in Milacron, a renowned name in injection molding and extrusion, to Bain Capital for a reported $287 million. The deal marks a pivotal shift for Hillenbrand as it continues to refine its business strategy, emphasizing its core sectors. With this sale, Bain Capital takes control of approximately 51% of Milacron, while Hillenbrand retains about 49% of ownership, maintaining a significant presence in the business.

The strategic decision was made following a comprehensive portfolio assessment, highlighting Hillenbrand's commitment to adapt to market dynamics and bolster its financial foundation. Kim Ryan, the President and CEO of Hillenbrand, expressed optimism, asserting that this shift would enhance the company’s margin profile and allow it to better focus on critical areas such as automation equipment for food, pharmaceuticals, and polymer markets.

This sale follows Hillenbrand's acquisition of Milacron Holdings Corp. in 2019, which included not only Milacron's injection molding and extrusion business but also other operations like Mold-Masters and DME. Since then, Hillenbrand has been actively refining its portfolio, having previously divested the Cimcool business in 2020 while keeping Mold-Masters and DME as part of its core offerings.

Bain Capital, known for its ability to drive growth in acquired businesses, expressed enthusiasm about the acquisition. Matt Evans, a Partner at Bain Capital, stated that they look forward to leveraging their expertise to enhance Milacron's global manufacturing capabilities and after-market solutions. This collaboration is poised to carve new opportunities, particularly in light of emerging technologies and industry trends.

The financial aspects of this deal are significant for Hillenbrand. It anticipates after-tax net proceeds of around $250 million from the sale, which it plans to allocate towards reducing its existing debts. This not only improves Hillenbrand's financial health but also paves the way for increased operational agility and strategic investments in its primary business areas.

As part of this transition, Bain Capital's operational oversight aims to inject new resources and focus into Milacron. The leadership team at Milacron is expected to leverage this partnership to not only solidify their existing market position but also to tap into growth opportunities amidst changing market demands. The transaction reflects a continued transformation for Hillenbrand into a leading industrial organization focused on its core competencies, while still retaining a vested interest in Milacron's future success.

Moreover, Hillenbrand is dedicated to ensuring that this transition is beneficial for all stakeholders involved, including employees, customers, and shareholders. The company’s ongoing commitment to innovation and excellence remains at the forefront of its business strategy, as it navigates through this transformative period.

In summary, this strategic divestiture of Milacron represents a significant step for Hillenbrand in terms of streamlining its operations and enhancing its focus on core growth areas. As both companies look towards the future, their ability to adapt and innovate will be critical in navigating the complexities of the global market.