Canadian hot runner specialist Mold-Masters Ltd. has been purchased by U.S.-based plastics technology business Milacron LLC in a deal valued at Cdn$975 million.
Georgetown, Ont.-based Mold-Masters is being sold by London-based investment firm 3i Group plc. Under the terms of the transaction, Milacron will acquire 100 per cent of the shares of Mold-Masters.
The deal is scheduled to close by April, according to 3i.
“The transaction will create a rapidly growing company with world-class capabilities across five businesses: Milacron (plastics machinery), Mold-Masters (hot runners), DME (mold base technologies), Aftermarket (parts and service) and CIMCOOL Fluid Technology (metalworking fluids and services),” Cincinnati-based Milacron said in a statement. “Each business will continue to focus on the unique, value-added solutions they bring to their respective customers while leveraging the tremendous synergies that exist among all the businesses.”
Tom Goeke, CEO of Milacron will lead the combined entity, Milacron said; Bill Barker, president and CEO of Mold Masters, will continue to lead that business.
“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,” Goeke said in a statement. “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.”
According to Barker, the Mold-Masters team is “very excited” at becoming part of the Milacron organization. "I am confident that combining Mold-Masters' unique capabilities with Milacron's will position the new company to provide even greater benefits to customers," he added.
The process to sell Mold-Masters started last December. Three firms – RW Baird, Morgan Stanley and Houlihan Lokey – were retained to guide that process. Interest came from both private equity firms and strategic buyers, including firms in Canada.