Milacron US HQMilacron's global HQ in Batavia, Ohio, USA.
US plastics machinery manufacturer Milacron and US manufacturer of hot runner technology and systems Mold-Masters have announced they are combining to form a leading global solutions provider which they say is positioned to serve the full range of customer needs. Milacron is backed by its private equity investor CCMP Capital Advisors.
According to the press release announcing the news, the transformative transaction will create a rapidly growing company with world-class capabilities across five businesses: Milacron (plastics machinery), Mold-Masters (hot runners), DME (mould base technologies), Aftermarket (parts and service) and Cimcool Fluid Technology (metalworking fluids and services). This structure will continue following the transaction.
The press release goes on to say that the combined entity will "provide its customers with market-leading technologies, superb global engineering and R&D leadership". It adds: "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."
The companies also expect that with enhanced financial and operational strength, reduced cyclicality, and a diverse international footprint with a strong market position in hot runners in Asia, the combined company will have greater opportunities for global expansion.
Under the terms of the transaction, Milacron will acquire 100% of the shares of Mold-Masters for an enterprise value of US$975 mn. Tom Goeke, chief executive officer of Milacron, will lead the combined entity with the support of a management team and global team of employees. Bill Barker, president and CEO of Mold Masters will 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. We have developed deep relationships with our customers over the course of many years and will continue to work closely with them to deliver the products and services they rely on, just as we do today. I am confident that combining Mold-Masters’ unique capabilities with Milacron’s will position the new company to provide even greater benefits to customers. I look forward to working closely with Tom and his team to realise the incredible growth potential of our combined organisation. We were privileged to have [US private equity firm] 3i as a partner over the last five years with their strong support for our global growth goals and continued investments in technology. We are equally excited to be at Milacron where we will have another world class investor like CCMP to support our continued growth.”
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 transaction, subject to customary closing conditions, is expected to close in the first half of 2013.
On January 24, 2013, Milacron announced that the former president of AndersonBrecon pharmaceutical packaging, Shawn Reilley, had joined Milacron as group president sales and marketing.
Speaking exclusively to Medical Plastics News, when commenting on Shawn's appointment, Shawn's boss and president of Milacron's global plastics machinery division, Dave Lawrence, said: “I am excited to bring Shawn to Milacron’s global leadership team for many reasons, foremost among them his demonstrated prowess in the area of sales and marketing."
He added: Additionally, Shawn’s extensive experience in pharmaceutical packaging strengthens our own efforts to bring innovative products and processes to our customers. Shawn’s customer perspective promises to be invaluable in allowing us to collaborate in earlier stages of design and development in medical and packaging products.”