Milacron Holdings, the largest manufacturer of plastic processing equipment in the US, filed on Friday with the SEC to raise up to $100 million in an initial public offering. However, the deal size is likely a placeholder for an IPO that we estimate could raise $350 million.
Milacron was listed on the NYSE under the symbol MZ until May 2008, when its market cap dropped below $75 million and the stock began trading on the OTC Markets. Due to the decline in the US construction and automotive industries, its Canadian and US divisions filed for bankruptcy in March 2009 and distressed debt investors Avenue Capital and and DDJ Capital took control. In April 2012, PE buyout firm CCMP acquired Milacron for an unknown amount.
Blackstone-backed construction supply company Summit Materials (SUM; +22%) is the only Capital Goods company that has gone public this year. Other recent LBO'd Capital Goods IPOs with automotive or construction end markets include Metaldyne Performance Group (MPG; +29%), Axalta Coating Systems (AXTA; +43%) and Advanced Drainage Systems (WMS; 81%). LBO'd plastic packaging maker Albéa (ABEA), a potential customer of Milacron, has been on file for a $150 million IPO since July 2014.
The Cincinnati, OH-based company, which traces its roots to 1860, plans to list on the NYSE or the NASDAQ under the symbol MCRN. BofA Merrill Lynch, Barclays, J.P. Morgan, Baird, Credit Suisse and Goldman Sachs are the joint bookrunners on the deal. No pricing terms were disclosed.
