Bain Capital Acquires Majority Stake in Milacron, a Global Leader in Plastic Processing Solutions
In a significant move that underscores the growing importance of domestic manufacturing and advanced engineering capabilities, Bain Capital, a leading private investment firm, has announced a majority investment in Milacron Injection Molding and Extrusion. The transaction positions Milacron, a globally recognized provider of highly engineered plastic processing equipment and services, for accelerated growth under Bain Capital’s strategic guidance. Hillenbrand, Inc. (NYSE: HI), Milacron’s current owner, will retain a 49% ownership stake, ensuring continuity and collaboration as the company enters its next phase of expansion.
Under the terms of the agreement, Bain Capital will acquire approximately 51% of Milacron for $287 million, subject to customary closing adjustments. This partnership marks a pivotal moment for Milacron, which has been a cornerstone of innovation in the plastics industry since its founding in 1968. With a legacy spanning over five decades, Milacron has established itself as a leader in injection molding and extrusion equipment, aftermarket parts, and service solutions. Its extensive installed base in the U.S. and global reach have made it a trusted partner for industries ranging from automotive and construction to packaging, consumer goods, and medical applications.
A Legacy of Innovation and Expertise
Milacron’s reputation as an industry pioneer is built on its commitment to delivering cutting-edge solutions tailored to the evolving needs of manufacturers. The company’s comprehensive portfolio includes advanced machinery, aftermarket support, and lifecycle services that cater to a diverse array of end-markets. By leveraging its deep engineering expertise and expansive customer relationships, Milacron has consistently driven innovation in the production of essential products used daily around the world.
Matt Evans, a Partner at Bain Capital Special Situations, highlighted Milacron’s enduring impact on the manufacturing landscape. “Milacron is an iconic American manufacturing business with a 50-year legacy of driving innovation in plastics,” Evans remarked. “As manufacturers increasingly prioritize supply-chain resilience and domestic production, we believe the U.S. is entering a manufacturing renaissance that will create significant opportunities for industry leaders like Milacron. With its advanced engineering capabilities, global reach, and deep customer relationships, Milacron is well-positioned to build on its strong foundation.”
Strategic Partnership to Drive Growth
The partnership between Bain Capital and Milacron is designed to unlock new avenues for growth and innovation. By combining Bain Capital’s financial resources and operational expertise with Milacron’s technical prowess, the collaboration aims to enhance the company’s market position and expand its offerings. Chris Sun, a Principal at Bain Capital Special Situations, emphasized the shared vision between the two organizations.
“We are excited to partner with Mac Jones, the President of Milacron, and the entire Milacron team to support the next chapter of growth of one of the world’s premier plastics processing solutions businesses,” Sun stated. “Milacron combines industry-leading engineering and manufacturing capabilities with innovative technology to enable the production of essential products used daily in the U.S. and around the world. We share a common vision with Milacron’s associates, customers, and other partners to continue building on Milacron’s more than 50-year legacy to create an even stronger future ahead.”
Hillenbrand’s decision to partner with Bain Capital reflects its commitment to optimizing Milacron’s potential while aligning with broader strategic goals. Kim Ryan, Hillenbrand’s President and CEO, explained the rationale behind the move. “Following an in-depth portfolio review, we determined that Milacron would be best positioned for the future through this partnership with Bain Capital,” Ryan said. “Bain Capital has a proven track record of successful corporate partnerships and will provide greater resources to Milacron, which we believe will drive future growth and success for Milacron’s associates and customers, as well as for Hillenbrand’s shareholders.”
Bain Capital’s Proven Track Record
Bain Capital’s Special Situations team brings a wealth of experience in supporting industrial and manufacturing businesses globally. With $22 billion in assets under management and over $16 billion invested since its inception in 2018, the team specializes in crafting bespoke capital solutions tailored to the unique needs of companies, entrepreneurs, and asset owners. This investment in Milacron follows the successful close of Bain Capital Special Situations’ second vintage of funds, which raised more than $9 billion. The team’s focus on operational growth and long-term value creation makes it an ideal partner for Milacron as it seeks to capitalize on emerging opportunities in the plastics processing sector.
The transaction is expected to close by the end of Milacron’s fiscal second quarter or the beginning of its fiscal third quarter. Deutsche Bank served as the exclusive financial advisor to Bain Capital, while Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel. As the partnership takes shape, all parties involved express confidence in Milacron’s ability to thrive in an increasingly competitive and dynamic market.
This investment represents more than just a financial transaction; it is a testament to the enduring value of innovation, collaboration, and strategic foresight. By uniting Milacron’s engineering excellence with Bain Capital’s operational expertise, the partnership is poised to redefine the future of plastic processing solutions. As manufacturers worldwide seek reliable, high-quality equipment and services, Milacron stands ready to meet these demands head-on, solidifying its status as a global leader in the industry.
In an era marked by shifting supply chains and heightened emphasis on domestic production, Milacron’s partnership with Bain Capital signals a bold step forward. Together, they aim to harness the power of innovation and resilience to deliver transformative solutions that benefit customers, employees, and stakeholders alike. With a shared commitment to excellence and growth, the future looks bright for Milacron as it embarks on this exciting new chapter.
