Hillenbrand, Inc. signed a definitive agreement to sell its Cimcool business to DuBois Chemicals, Inc. (DuBois) for $224 million.
Hillenbrand’s wholly-owned subsidiary Milacron LLC (Milacron) entered into an Equity and Asset Purchase Agreement with DuBois, pursuant to which DuBois will acquire the Cimcool business at a purchase price of approximately $224 million in cash, subject to certain customary closing adjustments.
In addition, DuBois has agreed to pay up to $26 million in contingent purchase price upon a future sale of the combined DuBois and Cimcool businesses.
The sale follows Hillenbrand’s previously announced strategic review of alternatives for the business, which was part of the 2019 acquisition of Milacron Holdings Corp.
Joe Raver, president and CEO of Hillenbrand said, “The proceeds from the sale will be used for de-leveraging activities, strengthening our financial position as we seek to enhance our leadership positions in the industrial platforms that represent our most compelling opportunities for profitable growth.”
Jeff Welsh, President and CEO of DuBois said, “We believe that this acquisition will allow us to increase our presence among significant customers and important segments. The expanded product portfolio of the combined organization will also allow us to meet our customers’ evolving needs in new applications areas.”
The closing of the transaction is expected to occur on March 30, 2020, subject to customary closing conditions.
Houlihan Lokey served as Hillenbrand’s financial advisor on the disposition.
Founded in 1920, DuBois researches, develops, manufactures, and supports a broad range of specialty chemical products and related equipment to provide solutions to customers’ most challenging performance, quality, cost, safety, and compliance issues for a variety of industries.
Cimcool produces metalworking fluids for the automotive, aerospace, and industrial sectors.