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Industrial equipment maker Hillenbrand (HI) on Friday said it has agreed to buy plastics-processing equipment maker Milacron Holdings (MCRN) in a cash-and-stock deal valued at about $2 billion, including debt.

Under the terms of the agreement, Milacron shareholders will receive $11.80 in cash and a fixed exchange ratio of 0.1612 a share of Hillenbrand for each share of Milacron common stock they own. The deal also includes net debt of about $686 million.

Based on Hillenbrand's closing stock price on Thursday, that adds up to $18.07 a share for Milacron shareholders, a premium of approximately 34% to Milacron's closing stock price on Thursday of $13.53.

Shares of Milacron surged more than 24% to $16.78 in trading on Friday. Shares of Hillenbrand opened down nearly 11% at $34.66. 

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