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HI Sells 51% Stake in Milacron, Plans to Use Proceeds to Repay Debt
HIHillenbrand(HI) ZACKS·2025-04-02 16:45

Core Viewpoint - Hillenbrand, Inc. has completed the sale of its majority interest in the Milacron injection molding and extrusion business to Bain Capital for 287million,aligningwithitsstrategytoenhancemarginsbyfocusingonhighergrowthopportunities[1][4].Group1:SaleDetails−TheMilacronbusinesswasacquiredbyHillenbrandin2019andcontributed287 million, aligning with its strategy to enhance margins by focusing on higher growth opportunities [1][4]. Group 1: Sale Details - The Milacron business was acquired by Hillenbrand in 2019 and contributed 526 million in revenues and 64millioninadjustedEBITDAinfiscal2024[2][3].−Followingthesale,BainCapitalownsapproximately5164 million in adjusted EBITDA in fiscal 2024 [2][3]. - Following the sale, Bain Capital owns approximately 51% of Milacron and has full operational control, while Hillenbrand retains a 49% stake [4]. Group 2: Financial Implications - Hillenbrand plans to use the net proceeds of approximately 250 million from the sale to repay its debt [4]. - The fiscal 2025 revenue outlook for Hillenbrand's remaining businesses has been updated to a range of 2.625−2.625 - 2.790 billion, down from the previous estimate of 2.925−2.925 - 3.090 billion [5]. - Total adjusted EBITDA is expected to be between 411millionand411 million and 447 million, with adjusted earnings per share anticipated in the range of 2.45−2.45 - 2.80 [6]. Group 3: Stock Performance - Hillenbrand's stock has experienced a significant decline, losing 50.5% over the past year, compared to an 11.4% decline in the industry [7].