Milacron to be sold for US$175 million

Injection press manufacturer Milacron Inc. announced that it has signed a definitive agreement to sell substantially all of its assets for approximately US$175 million.

The sale agreement is subject to bankruptcy court approval.

In return for Milacron’s assets, the purchasers will, among other things, repay or assume Milacron’s debtor-in-possession loan facilities and take on certain of the company’s other liabilities.

“This is a significant milestone in our restructuring process,” said Dave Lawrence, Milacron president and CEO, in a press release. “Since we began this reorganisation process on 10 March, we have experienced a great outpouring of support from across the industry. This, coupled with the faith our investors have in Milacron’s brands, products and people, positions us well for sustained long-term success moving forward.”

Milacron filed for Chapter 11 bankruptcy on March 10.

According to a news release, the acquisition is part of a comprehensive financial restructuring, intended to permit Milacron to continue as a going concern with substantially less debt. Under the proposed procedures, if no other qualified bids are received by June 24, Milacron will request Bankruptcy Court approval of the sale on June 26.