Milacron goes for IPO; expects to raise US$100 mn

US-based machinery company Milacron Holdings Corp., which is owned by private equity firm CCMP Capital Advisors, has filed a registration statement on Form S-1 with the US Securities and Exchange Commission for an IPO. The number of shares to be offered and the price range of the proposed offering have not yet been determined but the company is reported to have stated that it expects to raise US$100 million through the IPO. The company intends to apply to list its common stock on the New York Stock Exchange or the NASDAQ Global Market. It also expects to use the net proceeds of the offering for general corporate purposes, including the repayment of outstanding debts.

In the filing for the IPO, Milacron says it generated sales of US$1.2 billion in 2014, with sales of equipment generating US$476 million; for melt delivery and control systems it had sales of US$407 million, aftermarket services were US$200 million and fluid technologies, US$129 million.

It also claims it is positioned as the number one supplier of plastic processing systems in North America and number two in hot runner systems globally. In the S-1, Milacron states that it is a global leader in the US$27 billion plastic technology and processing industry, claiming that it is the only global company “with a full-line product portfolio that includes hot runner systems, injection moulding, blow moulding and extrusion equipment with strong market positions across these products, as well as leading positions in process control systems, mould bases and components, maintenance, repair and operating supplies for plastics equipment.”

Milacron says it has 27,000 customers, and has “achieved significant growth since 2012 through acquisitions and capacity investments in China and India.” Last year, it pledged to invest US$30 million in capacity expansions at its facility in India. Recently, at the Plastindia show in India, it exhibited a range of machinery including some new launches to the country.

It goes on to add in the filing, "We believe the growing demand for plastic products is supported by long term macroeconomic trends. Global population growth, coupled with continued urbanisation, increased purchasing power and improved lifestyle in emerging markets have resulted in greater demand for a broad range of finished plastic products in many segments of the economy, including automotive, construction and consumer products.”

Milacron has a long history dating back to 1860, when it was started up as Cincinnati Screw and Tap as a metal milling company. It entered the injection moulding machinery market in 1968, and was renamed Cincinnati Milacron in 1970. Meanwhile, in 2009, the company filed for Chapter 11 and was purchased by a private equity firm that later sold it to CCMP in 2012. The latter will hold a stake of more than 50% of the voting shares in the company, according to the IPO filing.

BofA Merrill Lynch, Barclays and J.P. Morgan are acting as joint lead book-running managers in the proposed offering. Baird, Credit Suisse, and Goldman, Sachs & Co. are also acting as book-running managers in the proposed offering.


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