Hillenbrand sells off Cimcool brand for deleveraging purposes.
Cimcool manufactures metalworking fluids and was owned by the Indiana industrial company Hillenbrand. Diversified in its manufacturing brands, Hillenbrand is the owner of 10 companies ranging from mold casting (Mold-Masters, Milacron, Injection molding & extrusion, DME) to casket making leader (Batesville).
Hillenbrand’s focus on profitable growth and robust cash generation to drive increased value for shareholders has led the global brand to part with the Cimcool brand to reduce and pay off its debts.
“The divestiture of Cimcool aligns with our previously disclosed intent to seek strategic alternatives for the business and allows us to remain focused on the continued integration of the Milacron APPT and MDCS businesses with Hillenbrand,” said Joe Raver, president and CEO of Hillenbrand. “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.”
The purchase price of the deal was 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, 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.
The new owner DuBois is already a market-leading full-service provider of customized specialty chemical solutions. Focusing on research, development, manufacturing, and supporting a broad range of customized specialty chemical products and related equipment to provide solutions for customers’ performance, quality, cost, safety, and compliance issues.
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.”