Industrials

Milacron Files for Secondary Offering

Chris Lange

Published: December 27, 2016 10:40 am

Last Updated: January 12, 2020 4:24 pm

Milacron Holdings Corp. (NYSE: MCRN) has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering. No pricing details were given in the filing, but the offering is valued up to $100 million, and the stock most recently closed at $18.72.

No underwriters have been named in this offering yet.

This company is a global leader in the manufacture, distribution and service of highly engineered and customized systems within the plastic technology and processing industry. Milacron is the only global company with a full-line product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment. It maintains strong market positions across these products, as well as leading positions in process control systems, mold bases and components, maintenance, repair and operating (MRO) supplies and fluid technology.

Milacron has strong brand recognition with products sold in over 100 countries across six continents, and its established and market driven global footprint is well-positioned to benefit from continued robust industry growth in both developed and emerging markets.

Its sales are geographically diversified, with 55% in North America, 19% in Europe, 9% in China, 7% in India and 10% in the rest of the world at the end of 2015, and with 55% in North America, 19% in Europe, 9% in China, 8% in India and 9% in the rest of the world for the nine months ended September 30, 2016.

The breadth of products, long history and global reach have resulted in a large installed base of over 40,000 plastic processing machines and over 140,000 hot runner systems as of December 31, 2015.

In terms of the use of proceeds from this offering, the company detailed in the filing:

The selling stockholders will receive all of the net proceeds from the sale of shares of our common stock offered pursuant to this prospectus, including from any exercise by the underwriters of their option to purchase additional shares. We will not receive any proceeds from the sale of shares of common stock offered pursuant to this prospectus, including from any exercise by the underwriters of their option to purchase additional shares.

Shares of Milacron closed most recently at $18.72, with a consensus analyst price target of $18.29 and a 52-week trading range of $11.56 to $19.32.