We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HI Sells 51% Stake in Milacron, Plans to Use Proceeds to Repay Debt
Read MoreHide Full Article
Hillenbrand, Inc. (HI - Free Report) announced that it has completed the previously announced sale of its majority interest in the Milacron injection molding and extrusion business (or Milacron) to Bain Capital for $287 million. This move aligns with Hillenbrand's ongoing portfolio transformation efforts to boost its overall margins by focusing on less cyclical and higher growth opportunities.
HI to Lower Debt Utilizing Sale Proceeds
The Milacron injection molding and extrusion business came under Hillenbrand’s portfolio following its acquisition of Milacron Holdings Corp. in 2019. The deal also included Mold-Masters, DME and Cimcool. The company sold the Cimcool business in 2020 but continues to retain ownership of the Mold-Masters and DME businesses.
Milacron fell under Hillenbrand’s Molding Technology Solutions segment. In fiscal 2024, Milacron contributed $526 million in revenues and $64 million in adjusted EBITDA.
Following a strategic portfolio review, Hillenbrand announced its intention to sell the majority stake in Milacron on Feb. 5, 2025. With the completion of the sale, Bain Capital now owns approximately 51% of Milacron and has full operational control, while Hillenbrand retains the remaining 49% stake. With this arrangement, Bain Capital will focus its resources on growing Milacron, with Hillenbrand retaining the scope to reap future returns from Milacron. The company also stated that it will use the net proceeds after tax of approximately $250 million to repay its debt, following customary closing adjustments.
Hillenbrand’s Updated Fiscal 2025 Outlook
On Feb. 5, Hillenbrand updated the fiscal 2025 outlook for remaining businesses to reflect the sale. Revenues for fiscal 2025 are now projected at $2.625 - $2.790 billion compared with the prior estimate of $2.925 - $3.090 billion. The Advanced Process Solutions segment’s revenues are projected at $2.05 - $2.175 billion and the Molding Technology Solutions segment’s revenues are estimated at $575 - $615 million.
Total adjusted EBITDA is expected between $411 million and $447 million and adjusted earnings per share are anticipated in the band of $2.45 - $2.80.
HI Stock’s Price Performance
In the past year, Hillenbrand’s shares have lost 50.5% compared with the industry’s fall of 11.4%.
Image Source: Zacks Investment Research
Hillenbrand’s Zacks Rank and Stocks to Consider
Hillenbrand currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for Mueller Water Products’ fiscal 2025 earnings is pegged at $1.25 per share, implying year-over-year growth of 29.2%. MWA delivered a trailing four-quarter average earnings surprise of 39.7%. Mueller Water Products’ shares have gained 65% in a year.
Applied Industrial Technologies delivered an average trailing four-quarter earnings surprise of 5.3%. The Zacks Consensus Estimate for Applied Industrial Technologies’ 2025 earnings is pinned at $9.90 per share, which indicates year-over-year growth of 1.5%. AIT shares have gained 17.5% in a year.
AZZ delivered an average trailing four-quarter earnings surprise of 15.20%. The Zacks Consensus Estimate for AZZ’s fiscal 2025 earnings is currently pegged at $5.12 per share, which indicates year-over-year growth of 13%. AZZ shares have gained 8.7% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HI Sells 51% Stake in Milacron, Plans to Use Proceeds to Repay Debt
Hillenbrand, Inc. (HI - Free Report) announced that it has completed the previously announced sale of its majority interest in the Milacron injection molding and extrusion business (or Milacron) to Bain Capital for $287 million. This move aligns with Hillenbrand's ongoing portfolio transformation efforts to boost its overall margins by focusing on less cyclical and higher growth opportunities.
HI to Lower Debt Utilizing Sale Proceeds
The Milacron injection molding and extrusion business came under Hillenbrand’s portfolio following its acquisition of Milacron Holdings Corp. in 2019. The deal also included Mold-Masters, DME and Cimcool. The company sold the Cimcool business in 2020 but continues to retain ownership of the Mold-Masters and DME businesses.
Milacron fell under Hillenbrand’s Molding Technology Solutions segment. In fiscal 2024, Milacron contributed $526 million in revenues and $64 million in adjusted EBITDA.
Following a strategic portfolio review, Hillenbrand announced its intention to sell the majority stake in Milacron on Feb. 5, 2025. With the completion of the sale, Bain Capital now owns approximately 51% of Milacron and has full operational control, while Hillenbrand retains the remaining 49% stake. With this arrangement, Bain Capital will focus its resources on growing Milacron, with Hillenbrand retaining the scope to reap future returns from Milacron. The company also stated that it will use the net proceeds after tax of approximately $250 million to repay its debt, following customary closing adjustments.
Hillenbrand’s Updated Fiscal 2025 Outlook
On Feb. 5, Hillenbrand updated the fiscal 2025 outlook for remaining businesses to reflect the sale. Revenues for fiscal 2025 are now projected at $2.625 - $2.790 billion compared with the prior estimate of $2.925 - $3.090 billion. The Advanced Process Solutions segment’s revenues are projected at $2.05 - $2.175 billion and the Molding Technology Solutions segment’s revenues are estimated at $575 - $615 million.
Total adjusted EBITDA is expected between $411 million and $447 million and adjusted earnings per share are anticipated in the band of $2.45 - $2.80.
HI Stock’s Price Performance
In the past year, Hillenbrand’s shares have lost 50.5% compared with the industry’s fall of 11.4%.
Image Source: Zacks Investment Research
Hillenbrand’s Zacks Rank and Stocks to Consider
Hillenbrand currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are Mueller Water Products (MWA - Free Report) , Applied Industrial Technologies (AIT - Free Report) and AZZ (AZZ - Free Report) . MWA currently sports a Zacks Rank #1 (Strong Buy), while AIT and AZZ each have a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mueller Water Products’ fiscal 2025 earnings is pegged at $1.25 per share, implying year-over-year growth of 29.2%. MWA delivered a trailing four-quarter average earnings surprise of 39.7%. Mueller Water Products’ shares have gained 65% in a year.
Applied Industrial Technologies delivered an average trailing four-quarter earnings surprise of 5.3%. The Zacks Consensus Estimate for Applied Industrial Technologies’ 2025 earnings is pinned at $9.90 per share, which indicates year-over-year growth of 1.5%. AIT shares have gained 17.5% in a year.
AZZ delivered an average trailing four-quarter earnings surprise of 15.20%. The Zacks Consensus Estimate for AZZ’s fiscal 2025 earnings is currently pegged at $5.12 per share, which indicates year-over-year growth of 13%. AZZ shares have gained 8.7% in a year.