Hillenbrand selling Cimcool business to DuBois Chemicals
The $224-million sale follows Hillenbrand's strategic review of alternatives for the Cimcool metalcutting fluids business, which was part of Hillenbrand’s 2019 acquisition of Milacron Holdings Corp.
Hillenbrand Inc. is selling its Cimcool metalcutting fluids business to DuBois Chemicals Inc. for US$224 million through its wholly-owned subsidiary Milacron LLC.
In addition, Hillenbrand will receive US$26 million in contingent purchase price upon a future sale of the combined DuBois and Cimcool businesses.
Cimcool manufactures metalworking fluid for automotive, aerospace, and industrial sectors.
The sale follows Hillenbrand’s previously announced strategic review of alternatives for this business, which was part of the 2019 acquisition of Milacron Holdings Corp.
“The divestiture of Cimcool aligns with our previously disclosed intent to seek strategic alternatives for the business and allows us to remain focused on the continued integration of the Milacron APPT and MDCS businesses with Hillenbrand,” said Joe Raver, president and CEO of Hillenbrand. “The proceeds from the sale will be used for de-leveraging activities, strengthening our financial position as we seek to enhance our leadership positions in the industrial platforms that represent our most compelling opportunities for profitable growth.”
Founded in 1920 and headquartered in Cincinnati, Ohio, DuBois provides customized specialty chemicals solutions and services to more than 15,000 customers.
“We are excited that our customers will have access to a new set of solutions, applications experts, and technical service resources to support and add value to their businesses,” said Jeff Welsh, president and CEO of DuBois. “We believe that this acquisition will allow us to increase our presence among significant customers and important segments. The expanded product portfolio of the combined organization will also allow us to meet our customers’ evolving needs in new applications areas.”
The transaction is expected to close on March 30, 2020.