BATESVILLE, Ind., March 30, 2020 /PRNewswire/ -- Hillenbrand,
Inc. (NYSE: HI) announced today that its wholly-owned subsidiary
Milacron LLC has completed the sale of its Cimcool business to
DuBois Chemicals, Inc. All conditions were met, including the
employee consultations required by Dutch law, allowing for the
transaction to be completed in a single closing and resulting in
cash proceeds to Hillenbrand of approximately $224 million.
"Finalizing the sale of Cimcool is timely and an important
milestone for Hillenbrand," said Joe
Raver, president and CEO of Hillenbrand. "The proceeds from
the divestiture meaningfully strengthen our financial position and
provide additional flexibility."
As previously announced, DuBois
has also agreed to pay up to $26
million in contingent purchase price upon a future sale of
the combined DuBois and Cimcool
businesses, conditioned upon DuBois' ultimate sponsor receiving elevated
levels of return on equity, for an aggregate purchase price not to
exceed $250 million should these
conditions be met.
Consistent with its current capital allocation priorities,
Hillenbrand intends to use cash proceeds from the sale primarily
for de-leveraging activities.
About Hillenbrand
Hillenbrand (www.hillenbrand.com)
is a global diversified industrial company with businesses that
serve a wide variety of industries around the world. We pursue
profitable growth and robust cash generation to drive increased
value for our shareholders. Hillenbrand's portfolio includes
industrial businesses such as Coperion, Milacron Injection Molding
& Extrusion, and Mold-Masters, in addition to Batesville, a recognized leader in the death
care industry in North America.
Hillenbrand is publicly traded on the NYSE under "HI."
Forward-Looking Statements
Throughout this release, we make a number of "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. As the words imply, these are statements about
future plans, objectives, beliefs, and expectations that might or
might not happen in the future, as contrasted with historical
information. Forward-looking statements are based on assumptions
that we believe are reasonable, but by their very nature they are
subject to a wide range of risks. If our assumptions prove
inaccurate or unknown risks and uncertainties materialize, actual
results could vary materially from Hillenbrand's (the "Company")
expectations and projections.
Words that could indicate that we are making forward-looking
statements include the following:
intend
|
believe
|
plan
|
expect
|
may
|
goal
|
would
|
become
|
pursue
|
estimate
|
will
|
forecast
|
continue
|
could
|
target
|
encourage
|
promise
|
improve
|
progress
|
potential
|
should
|
This is not an exhaustive list, but is intended to give you an
idea of how we try to identify forward-looking statements. The
absence of any of these words, however, does not mean that the
statement is not forward-looking.
Here is the key point: Forward-looking statements
are not guarantees of future performance, and our actual results
could differ materially from those set forth in any forward-looking
statements. Any number of factors, many of which are beyond our
control, could cause our performance to differ significantly from
what is described in the forward-looking statements. These factors
include, but are not limited to: the outcome of any legal
proceedings that may be instituted against the Company, or any
companies we may acquire; risks that the integration of Milacron or
any other integration, acquisition, or disposition activity
disrupts current operations or poses potential difficulties in
employee retention or otherwise affects financial or operating
results; the ability to recognize the benefits of the acquisition
of Milacron or any other acquisition or disposition, including
potential synergies and cost savings or the failure of the Company
or any acquired company to achieve its plans and objectives
generally; global market and economic conditions, including those
related to the credit markets; volatility of our investment
portfolio; adverse foreign currency fluctuations; involvement in
claims, lawsuits and governmental proceedings related to
operations; our reliance upon employees, agents, and business
partners to comply with laws in many countries and jurisdictions;
labor disruptions; the impact of the additional indebtedness that
the Company has incurred in connection with the acquisition of
Milacron and the ability of the Company to comply with financial or
other covenants in its debt agreements or meet its de-leveraging
goals; the dependence of our business units on relationships with
several large providers; increased costs or unavailability of raw
materials or certain outsourced services; continued fluctuations in
mortality rates and increased cremations; competition in the
industries in which we operate, including from nontraditional
sources in the death care industry; our level of international
sales and operations; the impact of contagious diseases such as the
recent coronavirus outbreak that could result in an extended
shutdown or reduction of our operations, substantially reduced
sales volumes, or supply constraints; cyclical demand for
industrial capital goods; impacts of decreases in demand or changes
in technological advances, laws, or regulation on the revenues that
we derive from the plastics industry; certain tax-related matters;
and changes to legislation, regulation, treaties or government
policy, including any resulting from the current political
environment. For a more in-depth discussion of these and other
factors that could cause actual results to differ from those
contained in forward-looking statements, see the discussions under
the heading "Risk Factors" in Part I, Item 1A of Hillenbrand's Form
10-K for the year ended September 30,
2019, filed with the Securities and Exchange Commission
("SEC") on November 13, 2019, and in
Part II, Item 1A of Hillenbrand's Form 10-Q for the quarter ended
December 31, 2019, filed with the
Securities and Exchange Commission on February 5, 2020. We assume no obligation to
update or revise any forward-looking information.
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SOURCE Hillenbrand, Inc.