Hillenbrand and Milacron Holdings recently announced that Hillenbrand will acquire Milacron for approximately $ 2 billion in cash and stock transactions, which includes approximately $ 686 million in debt (as of March 31, 2019). A final agreement has been reached on the transaction.
Pursuant to the terms of the agreement approved by the two companies' boards of directors, Milacron's shareholders each received Milacron common stock of $ 11.80 in cash and converted into Hillenbrand common stock at a fixed conversion ratio of 0.1612 shares. According to the closing price of Hillenbrand on July 11, 2019, the last trading day before the announcement, Milacron shareholders will receive an implicit cash of $ 18.07 per share plus a stock consideration, which is equivalent to Milacron's closing on July 11, 2019. The price is about 34% premium and Milacron's 30-day volume weighted average price at the close of July 11, 2019 is about 38% premium. At the close, Hillenbrand shareholders will own approximately 84% of the combined company, while Milacron shareholders will own approximately 16%.
Milacron manufactures and distributes engineering and custom systems and provides related services, as well as fluid technology and processing systems, in the approximately $ 30 billion plastic technology and processing industry. Milacron has three business units: the Melt Conveying and Control Systems Division-designing and manufacturing highly engineered, technologically advanced hot runners and process control systems, mold bases and components, and the Advanced Plastics Processing Technology Division-designing and manufacturing plastics Processing equipment and systems, including injection molding machines, extrusion and auxiliary systems, and the fluid technology division-producing products for a variety of metalworking processes.
The transaction is a key step in Hillenbrand's vision to become the world's leading diversified industrial company, which will use Milacron ’s leading brands, including Mold-Masters and Milacron injection molding -Adding new hot runner systems and injection molding strategic business to Hillenbrand's portfolio. At the same time, the combined company will expand in size, diversify its products, and enhance its ability to serve customers through complementary technologies in the plastic value chain, including plastic base resin production, compounding, extrusion and injection molding product processing and recycling.
"The transaction will help us achieve long-term growth with Milacron's leading technology solutions and a stable and large customer base, which will meaningfully change our portfolio and product systems," said Joe Rafer, President and CEO of Hillenbrand. .Miraclon is in line with our profit growth strategy and acquisition framework. We hope to gain additional capabilities from its high-performance department to accelerate the generation of free cash flow and improve the profitability of the entire company. I respect Miraclon's Excellent employees and welcome to join Hillenbrand because this is the next step in our strategic layout and we will create higher value for shareholders, customers, employees and the community. "
"After careful review, our board agreed that the merger with Hillenbrand is a special opportunity that will provide Milacron shareholders with significant immediate value and benefit from the combined company ’s Benefit from the upside potential. Hillenbrand's highly engineered product portfolio has tremendous growth potential and driving value. Together we will provide our customers with innovative products and customized systems. This combination is the Milacron team's improvement in our role as a plastics technology and Great progress has been made in the global leader in processing. I believe Hillenbrand will be a strong partner and we hope to achieve a seamless transition. "