Hillenbrand Sells Majority Stake in Milacron to Bain Capital, Focuses on Core Markets
- Hillenbrand sold a majority interest in Milacron to Bain Capital for $287 million, retaining a 49% stake.
- The sale aids Hillenbrand's transformation into a focused industrial company, emphasizing core markets like food and pharmaceuticals.
- Hillenbrand expects about $250 million in net proceeds for debt reduction, enhancing its financial standing and operational efficiency.
Hillenbrand Restructures Portfolio with Milacron Sale to Bain Capital
Hillenbrand, Inc. has completed a pivotal strategic move by selling a majority interest in its Milacron injection molding and extrusion business to Bain Capital for $287 million. This transaction results in Bain Capital acquiring approximately 51% ownership of Milacron, while Hillenbrand retains a 49% stake. The deal is a significant step in Hillenbrand's ongoing transformation into a focused industrial company, allowing it to sharpen its emphasis on core markets such as food, pharmaceuticals, and polymers. As part of the deal, Hillenbrand expects to receive about $250 million in after-tax net proceeds, which will be directed primarily towards debt reduction.
This divestiture aligns with Hillenbrand's strategy to enhance its margin profile and streamline its operations. According to President and CEO Kim Ryan, the sale not only strengthens the company's financial standing but also positions it for potential future returns from its remaining stake in Milacron. Since Hillenbrand's acquisition of Milacron Holdings Corp. in 2019, which included brands like Mold-Masters and DME, the company has been working to refine its focus and maximize operational efficiency. The sale of Milacron is a clear indication of this ongoing effort, as Hillenbrand seeks to concentrate on sectors where it can exhibit strong growth and competitive advantage.
Bain Capital's acquisition of a majority stake in Milacron is expected to foster growth and innovation within the company. With Bain's resources, Milacron's management team is poised to capitalize on emerging technologies and expand its manufacturing and aftermarket solutions. Matt Evans, a Partner at Bain Capital, expresses enthusiasm about collaborating with Hillenbrand and Milacron's team to build on the company's established legacy. This partnership is not only a strategic move for Hillenbrand but also provides Milacron with the necessary tools and support to thrive in an increasingly competitive industrial landscape.
In summary, Hillenbrand's sale of Milacron to Bain Capital marks a significant milestone in the company's strategic transformation. By retaining a minority stake, Hillenbrand maintains a vested interest in Milacron's future while reinforcing its commitment to core industrial markets. The anticipated financial benefits from this deal, coupled with Bain Capital's support for Milacron, position both companies for a promising trajectory in their respective sectors.