Prospect of Synergies and Growth
Hillenbrand, the Owner of Coperion, Plans a Takeover of the US Milacron Group
The US Conglomerate Hillenbrand is taking over Milacron Holdiings Corp., which specializes in manufacturing plastics processing machinery and systems. The two companies announced the agreement by their boards of directors in a press release on July 12, 2019. According to this, the acquisition amounts to a volume of USD 2 billion and includes Macron’s net debt of EUR 686 million as of March 31, 2019. Provided that Milacron’s stockholders agree to the offer - of USD 11.80 in cash per share and a fixed exchange rate of 0.1612 for converting Milacron common stock into Hillenbrand common stock - and that the deal is approved by the cartel authorities, the transaction is expected to close in the first quarter of 2020.
Joe Raver, President and CEO of Hillenbrand Inc. based in Batesville/Indiana, described the entry into a new strategic business field as another step toward expanding the company as a global, diversified industrial concern. The two divisions “Process Equipment Group,” which develops and produces industrial plants, and Batesville, in North America, market leader in funeral accessories, together earned a revenue of USD 1.77 billion in 2018.
Nevertheless, Milacron is not its first point of contact with the plastics industry. Since 2012, the “Process Equipment Group,” which represents revenue of USD 1.22 billion, has also included Coperion, a supplier of compounding lines and extruders, as well as of accessories for metering, weighing technology and bulk materials handling. With the takeover of Milacron and the resulting growing offering of complementary technologies, Raver expects the combined company to achieve considerably synergies and growth potential across the plastics value chain.
Three Market Segments
Following the recent sale of the Uniloy blow molding machine division to an investor group, Milacron now operates in three market segments. They are “Melt Delivery & Control Systems” with the hot-runner manufacturer as the most profitable brand, the mechanical engineering division “Advanced Plastics Processing Technologies,” which is best known in Europe for its former subsidiary the machine manufacturer Ferromatik Milacron, and the “Fluid Technologies” division, which markets products for a large number of metal-processing systems.
In fiscal 2018, Milacron earned revenue of USD 1.26 billion, corresponding to an increase of 1.9% year on year (USD 1.23 billion). Compared to 2017, the plastics machinery manufacturing industry experienced a slight decline from USD 689 million to USD 677 million, while earnings with products for melt flow distribution and control increased from USD 424 million to USD 452 million.
Milacron LLC Head Office
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