Hillenbrand announces $ 2 billion acquisition – Inside INdiana Business

Hillenbrand Inc. (NYSE: HI), based in Batesville, has announced plans to make a major acquisition. The manufacturer has entered into an agreement to acquire Milacron Holdings Corp. (NYSE: MCRN), based in Cincinnati, in a cash and stock transaction. The acquisition was unanimously approved by the boards of directors of both companies.

Milacron manufactures, distributes and maintains systems in the fields of plastics technology and processing. Hillenbrand stated that this acquisition would increase growth opportunities, increase the size and diversification of its business and create and enhance the effectiveness of the company.

"This transaction significantly transforms our portfolio and product offering by adding Milacron's state-of-the-art technology solutions and a large installed base of customers to help drive long-term growth," said Joe Raver, President and CEO. General Hillenbrand. "Milacron aligns with our profitable growth strategy and acquisition framework, and we hope that the additional capabilities of its high-performance segments will accelerate the generation of free cash flow and improve margins for the company." I have a lot of respect for the talented employees of Milacron and I look forward to welcoming them. "Hillenbrand as we embark on this new phase of our strategy and create added value for our shareholders, customers, employees and communities. "

Under the terms of the agreement, Milacron shareholders will receive $ 11.80 in cash and 0.1162 common shares of Hillenbrand for each Milacron common share they own. Once the acquisition is finalized, Hillenbrand shareholders will own 84% of the merged company, with Milacron shareholders holding 16%.

"After careful consideration, our Board unanimously concluded that a consolidation with Hillenbrand represented a unique opportunity to provide Milacron's shareholders with significant and immediate value and the ability to capitalize on the growth potential of the Company. grouping, "said Tom Goeke, president Milacron. "Hillenbrand has an outstanding track record of growth and value creation for its high technology portfolio and together we will continue to provide our customers with leading-edge products and customized systems."

The acquisition is expected to close in the first quarter of 2020. The transaction remains subject to Milacron shareholder approval, as well as regulatory approvals and customary closing conditions.