Milacron Weighs $300 Million Cimcool Division Sale

(Bloomberg) -- Plastics equipment maker Milacron Holdings Corp. is considering a sale of its Cimcool unit, according to people with knowledge of the matter.

The company is working with an adviser to solicit offers for the business, which could fetch as much as $300 million, said the people, who asked not to be identified because they weren’t authorized to speak publicly.

A final decision hasn’t been made and Milacron could elect to keep the company, the people said.

Representatives for Milacron didn’t respond to phone and email messages seeking comment.

Cincinnati-based Milacron’s deliberations come amid a wave of potential chemical sector transactions. PolyOne Corp. is considering a sale of its PPS unit while German conglomerate BASF SE is selling its construction chemicals business, with Cinven and Blackstone Group LP among the bidders.

Milacron’s shares rose as much as 9.2% Friday, closing up 5.5% to $13.80, valuing the company at $973 million.

The Cimcool division produces coolants and lubricants for industrial machinery. Milacron also has a plastics machinery division and a precision manufacturing arm that creates parts for the wind and oil and gas industries, according to its website.

Milacron had $216 million in earnings before interest, taxes , depreciation and amortization on revenue of $1.26 billion in 2018. The Cimcool fluids business had Ebitda of $29 million on sales of $129 million.

To contact the reporter on this story: Kiel Porter in Chicago at kporter17@bloomberg.net

To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha, Matthew Monks

©2019 Bloomberg L.P.