Hillenbrand to sell Cimcool to DuBois Chemicals
Hillenbrand Inc. has reached a definitive agreement to sell its Cimcool business to DuBois Chemicals Inc.
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.
Hillenbrand's wholly-owned subsidiary Milacron LLC entered into an Equity and Asset Purchase Agreement with DuBois, pursuant to which DuBois will acquire the Cimcool business at a purchase price of approximately $224 million in cash, subject to certain customary closing adjustments. In addition, DuBois has agreed to pay up to $26 million in contingent purchase price upon a future sale of the combined DuBois and Cimcool businesses, conditioned upon DuBois' ultimate sponsor receiving elevated levels of return on equity, for an aggregate purchase price not to exceed $250 million should these conditions be met.
"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, DuBois is a provider of customized and value-added specialty chemicals solutions and services to more than 15,000 customers. DuBois researches, develops, manufactures, and supports a broad range of specialty chemical products and related equipment to provide solutions to customers' most challenging performance, quality, cost, safety, and compliance issues for a variety of industries.
"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."
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