2013 Exhibitions
Machinery firm Milacron is to acquire 100% equity of Canadian hot runner maker Mold-Masters for C$975 million. This news come against the back of recent reports about UK-based private equity owner of Mold-Masters, 3i, seeking a buyer for the Toronto-based hot runner supplier. Milacron is backed by its private equity investor owner CCMP Capital Advisors.
The firms are combining to form a global solutions provider that will include Milacron (Plastics Machinery), Mold-Masters (Hot Runners), DME (Mold Base Technologies), Aftermarket (Parts and Service) and CIMCOOL Fluid Technology (Metalworking Fluids and Services). The transformative transaction will amount to each business continuing to focus on the value-added solutions they bring to their respective customers while leveraging the tremendous synergies that exist among all the businesses, said Milacron in a statement.
The combined entity will provide its customers with market-leading technologies, global engineering and R&D leadership. Through their complementary product lines, Milacron and Mold-Masters will be able to offer a broader portfolio of exceptional products and services, providing solutions for customers’ complex plastics needs.
Tom Goeke, CEO of Milacron will lead the combined entity with Bill Barker, President and CEO of Mold Masters, to continue to lead that business. Goeke said, “The acquisition creates a global leader in the plastics industry with the scale, technological leadership, international presence and competitive positioning to deliver a wide range of products and services to more customers in more markets around the world. Mold-Masters’ expertise in the high-growth hot-runner market is second to none, and we are excited by the unique customer value proposition and numerous opportunities for growth that will result from this combination. Bill Barker, his management team and all of his employees share our commitment to excellence. We are thrilled that they will continue to lead the Mold-Masters business going forward and are excited to welcome them to our team.”
Barker said, “We are also very excited to join Milacron and become part of an industry-leading company known for providing high-quality plastics processing equipment and products, as well as exceptional customer service and aftermarket support.”
Tim Walsh, a Managing Director of CCMP Capital Advisors, said, “This transaction is a major step in Milacron’s strategic growth plan which reinforces our support of the company’s exciting prospects and our commitment to leveraging our extensive experience in the plastics industry to help Milacron maximize its global market opportunities and increase its value to customers.
The deal with Milacron was reached at the end of an auction process initiated by 3i late last year. 3i announced a portfolio restructuring strategy last June and expects to make US$343 million from the sale of Mold-Masters. The transaction, subject to customary closing conditions, is expected to close in the first half of 2013.
(PRA)
