Bain Capital, a prominent private investment firm, has announced a majority investment in Milacron, a leading provider of engineered plastic processing equipment and services. The firm will acquire approximately 51% of Milacron for $287 million, while current owner Hillenbrand will retain a 49% stake and continue to play a significant role in the company’s growth.

Milacron has been a key player in the plastic processing industry since 1968, offering solutions such as injection molding and extrusion equipment, along with aftermarket parts and services. The company serves various sectors, including construction, automotive, packaging, consumer goods, and medical industries. With the largest installed base of equipment in the U.S., Milacron is recognized for its comprehensive lifecycle support and extensive service network.

Bain Capital’s investment comes from its Special Situations team, which recently closed its second fund vintage, raising over $9 billion. This team manages $22 billion in assets and has invested over $16 billion since its inception in 2018, focusing on providing tailored capital solutions to meet the diverse needs of companies and asset owners. Their expertise in supporting industrial and manufacturing businesses positions them well to drive operational growth and long-term value for Milacron.

The transaction is anticipated to close by the end of Milacron’s fiscal second quarter or the beginning of the third quarter. Deutsche Bank is acting as the exclusive financial advisor, while Paul, Weiss, Rifkind, Wharton & Garrison serves as legal counsel for Bain Capital.

Bain Capital executives expressed optimism about the partnership. Matt Evans, a partner at Bain Capital Special Situations, highlighted Milacron’s legacy of innovation in plastics and the potential for growth amid a manufacturing renaissance in the U.S. He emphasized Milacron’s advanced engineering capabilities and strong customer relationships as key assets for future success.

Chris Sun, a principal at Bain Capital, echoed this sentiment, stating their excitement to collaborate with Milacron’s leadership to support the company’s next growth phase. He noted Milacron’s combination of industry-leading engineering and innovative technology, which is crucial for producing essential products globally.

Hillenbrand’s President and CEO, Kim Ryan, remarked that after a thorough portfolio review, the partnership with Bain Capital was deemed the best path forward for Milacron. She expressed confidence that Bain Capital’s resources and expertise would enhance Milacron’s growth prospects, benefiting both the company’s employees and Hillenbrand’s shareholders.

In summary, Bain Capital’s investment in Milacron marks a significant step in the latter’s evolution, leveraging Bain’s financial strength and operational expertise to foster growth in a vital sector of the economy.