Milacron’s Blow Molding Business Sold

Osgood Capital Group and Cyprium Investment Partners have agreed to buy the Uniloy blow molding machinery business of publicly traded Milacron Holdings Corp.

Uniloy’s line of blow molding machines includes reciprocating screw blow molders, injection blow molding presses, shuttle machines and accumulator head blow molding machines. The business is also a maker of a range of molds and tooling for all current Uniloy machine models. Uniloy also provides aftermarket parts and service to support its products. Uniloy’s products are manufactured in Tecumseh, MI and Batavia, OH (click HERE for the Uniloy web page).

Milacron acquired the Uniloy plastics machinery business from Johnson Controls in September 1998 for approximately $190 million. At that time it had annual sales of about $190 million and was the largest North American maker of blow molding systems. During the first quarter of 2019, Milacron reported that quarterly revenues for the Uniloy blow molding machinery business were $21.5 million which was about even with the year-earlier quarter.

The new Uniloy organization will be led by Brian Marston as president and chief executive officer. Mr. Marston is currently the president of Blow Molding and Extrusion with Milacron and he has held senior management positions within the plastics and blow molding industry for 35 years. “The new Uniloy organization will continue to provide the same high-performance machinery, technical expertise and aftermarket support that our customers have experienced since the 1960s. The Uniloy brand will continue to be recognized as a global leader in the blow molding industry. We will be working hand in hand with Milacron to make this a seamless transition for our customers.”

“We are excited to have this opportunity to work with the outstanding Uniloy management team led by Brian,” said Joseph Levy, president of Osgood Capital. “We expect to deliver world-class service and solutions for all our customers’ blow molding needs as well as strong growth in global Uniloy brands for years to come.”

Osgood Capital Group is a lower middle market private equity firm that invests in companies that are active in the plastics, packaging, aerospace, automotive, energy services, electronics, technology, software and consumer products sectors. The firm was founded by Joseph Levy in 2011 and is headquartered in Houston (no website found).

Cyprium provides capital for acquisitions, growth, shareholder or partnership buyouts, refinancings and dividend distributions, without requiring majority control. The firm provides capital via subordinated debt, preferred stock and common stock.  Cyprium invests from $10 million to $60 million per transaction in US or Canadian-based companies that have revenues from $40 million to $500 million and more than $8 million of EBITDA. Cyprium has offices in Cleveland, New York, and Chicago (www.cyprium.com).

Milacron (NYSE: MCRN) is a manufacturer, distributor and servicer of equipment used in the plastic technology and processing industry. The company’s products include hot runner systems, injection molding, mold components and extrusion equipment plus a range of industrial processing fluids. The company is headquartered in Cincinnati (www.milacron.com).

“Uniloy has operated as a Milacron product brand since 1998, and we are confident it will continue to thrive under its new ownership in the years ahead,” said Tom Goeke, Milacron’s president and chief executive officer. “This divestiture is consistent with our decision to concentrate on our core industry-leading technologies including Milacron injection molding machines, Milacron extrusion equipment, Mold-Masters hot runner and control systems, DME mold components, and our CIMCOOL fluid technologies.”

The buy of the Uniloy blow molding machinery business by Osgood and Cyprium is expected to close within the next ninety days.

© 2019 Private Equity Professional | May 15, 2019

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