M&As: Hillenbrand buys mixing tech firm Linxis for EUR570 mn; Chase acquires NuCera for US$250 mn

US-based industrial group Hillenbrand, which owns Coperion, Milacron Injection Molding & Extrusion, and Mold-Masters, is to acquire Linxis Group from Iberis International, an affiliate of IK Partners, for approximately EUR572 million. Linxis is a provider of mixing, ingredient automation, and portioning solutions for food and other higher growth end markets.

Linxis has six brands – Bakon, Diosna, Shaffer, Shick Esteve, Unifiller, and VMI – that serve customers in over 100 countries. With a global footprint and headquarters in Nantes, France, it specialises in the design, manufacturing, and service of dosing, kneading, mixing, granulating, drying and coating technologies that are complementary to the equipment and solutions offered under Hillenbrand’s Coperion brand. Linxis expects calendar year 2022 revenue of approximately EUR300 million with mid-teen EBITDA margins.

Upon completion of required works council consultations, the parties expect to enter into a definitive purchase agreement, with closing expected to occur before calendar year end, subject to regulatory approvals.

“Linxis Group will continue to build upon our profitable growth strategy by further strengthening and accelerating our position in the attractive food end market and enhancing the technical capabilities of our products and service offerings,” said Kim Ryan, President/CEO of Hillenbrand. “By leveraging the combined capabilities of our Coperion brand and the Linxis Group brands, we will be able to offer more comprehensive processing solutions, creating significant value for our customers. Through cross-selling opportunities in key geographies, the deployment of the Hillenbrand Operating Model, and utilization of our scalable foundation, we expect this acquisition to deliver compelling long-term shareholder value.”

Upon completion of this transaction, Linxis Group and its over 1,000 global employees operating in ten manufacturing facilities will join its Coperion and Rotex brands as part of Hillenbrand’s Advanced Process Solutions (APS) segment. The APS segment provides highly engineered industrial equipment and systems and aftermarket parts and services for a variety of end markets and applications.

Hillenbrand expects to use committed debt financing, cash on hand, and cash available under its revolving credit facility to fund this acquisition.

In other news, material supplier Chase Corp. is acquiring specialty polymer maker NuCera Solutions from private equity firm SK Capital for US$250 million.

Houston-based NuCera makes specialty resins and waxes. Its primary production facility is based in Barnsdall, Oklahoma, and it has additional international sales offices in France and Singapore. The company employs approximately 130 people globally.

US firm Chase, which makes protective materials, says the deal is “transformational” in advancing its strategic growth priorities.

“NuCera is a recognised leader in developing and manufacturing specialty polymers and polymerization technologies that serve demanding applications globally,” Chase President/CEO Adam Chase said.

“The company’s strong market position, North American manufacturing footprint, and captive synthesis capabilities will allow us to gain additional scale and expand our presence across multiple new high-growth end markets, while maintaining both a strong balance sheet and financial flexibility.”

The transaction is expected to close by the end of the third quarter of 2022.

(PRA)

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