CCMP Capital-Backed Milacron Sets Terms for Its IPO

NEW YORK ( TheDeal) -- CCMP Capital Advisors LLC-backed plastics processing company Milacron Holdings has set the price range for its initial public offering at between $20 and $22 a share.

Cincinnati-based Milacron plans to offer 14.3 million shares. At the midpoint of the range, the company would raise about $300.3 million, and it would raise another $44.1 million if underwriters fully exercise their option to buy up to an additional 2.1 million shares.

Milacron will have 66.6 million shares outstanding after the IPO, valuing it at $1.4 billion at the midpoint of the price range.

The company plans to list its shares on the New York Stock Exchange under the symbol MCRN.

CCMP, which has owned Milacron for three years, is not selling shares in the IPO.

Milacron makes, distributes and services plastic processing systems. The company began operations in 1860 as a screw and die tap manufacturer before expanding into the manufacture of plastic processing equipment in the 1960s.

CCMP acquired Milacron from Avenue Capital Group in April 2012 for $198.7 million. Avenue Capital was part of a noteholder group that purchased the assets of bankrupt Milacron for $175 million in August 2009.

CCMP owns 79.1% of Milacron's common stock. After the IPO, the private equity firm will have a 62.1% stake, dropping down to 60.2% if the underwriters exercise their option to buy more shares.

Milacron filed its initial IPO papers in April.

On May 15, Milacron paid a shareholder dividend of approximately $145 million. Of that amount, CCMP received $114.3 million, according to Milacron's amended S-1 filing.

Under CCMP's ownership, Milacron acquired Canadian plastics industry technology provider Mold-Masters from 3i Group for $965.5 million in March 2013.

Milacron did an additional five acquisitions in 2014, including Kortec, a Rowley, Mass., supplier of co-injection technology solutions, and Tirad s.r.o., a Czech Republic maker of components for injection molding and other sectors. Total consideration, net of cash, for the five acquisitions was $50.4 million, according to the S-1 filing.

For the full-year 2014, Milacron had total sales of $1.2 billion and adjusted Ebitda of $199 million. In the first three months of 2015, the company had revenue of $279 million and adjusted Ebitda of $45 million.

If you liked this article you might like

Intercept Sinks on Safety Issue, One Analyst Says Buy Anyway - Biotech Movers

Impax Shares Jump on Merger Buzz

FDA OKs BioCryst's Rapivab for Pediatric Indication - Biotech Movers

Alnylam Shares Skyrocket on Clinical Study Results - Biotech Movers

MediWound Shares Lower After Pricing Stock Offering - Biotech Movers