Milacron To Acquire CanGen
07.11.2016
Milacron Holdings Corp. (“Milacron”) (NYSE: MCRN), a leading industrial technology company serving the plastics processing industry, has agreed to acquire CanGen Holdings, Inc. (“CanGen”) consisting of subsidiaries Canterbury Engineering Company and Genca.
Milacron Holdings Corp. (“Milacron”) (NYSE: MCRN), a leading industrial technology company serving the plastics processing industry, has agreed to acquire CanGen Holdings, Inc. (“CanGen”) consisting of subsidiaries Canterbury Engineering Company and Genca.
CanGen is a leading supplier of highly engineered aftermarket process control components for extrusion and injection molding applications with approximately $20 million in sales. This acquisition will be immediately accretive to Milacron’s Adjusted EPS and enhances Milacron’s aftermarket capabilities including a broadened product offering into downstream tooling, proprietary rights to over 185,000 unique designs and drawings, and a regional center for parts and service in the southeastern U.S. Genca also has a strong market position throughout Mexico and South America which can be leveraged under Milacron ownership.
Milacron CEO Tom Goeke stated “CanGen fits perfectly with our core growth strategy of accelerating lifecycle sales through consumable products and aftermarket service. This acquisition brings a complementary product portfolio and customer base to Milacron, further building upon our fully integrated customer-driven solutions. Additionally, CanGen provides an entry into the extrusion market for rubber products, which opens up a new set of customers for Milacron’s existing product range.”
The consumables product market served by Canterbury and Genca includes screws & barrels, tooling and cross-heads, and other machined metal components. CanGen’s products are marked by substantial recurring revenues from the regular repair and replacement cycles of its large installed base.
CanGen CEO Paul Cusolito commented that “The combination offers a great opportunity for CanGen and its employees to serve a significantly larger customer base while obtaining access to the extensive resources available at Milacron. We look forward to working with the Milacron team to continue building upon our available product offerings and value-add to our customers. This is a great fit for the future of our business and our employees.”
The transaction, subject to customary closing conditions, is expected to close by the end of 2015.
About Milacron
Milacron is a global leader in the manufacture, distribution and service of highly engineered and customized systems within the plastic technology and processing industry. Milacron is the only global company with a full-line product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment plus a wide market range of advanced fluid technologies. Visit the new Milacron at www.milacron.com.
About CanGen
CanGen supplies highly engineered aftermarket process control components for extrusion and injection molding applications. Its products include customized screws, barrels and tooling and cross-heads for extruders operating in the building products, rubber tire, packaging and recycling end markets. The company is headquartered in Atlanta, Georgia, with additional facilities in St. Petersburg, Florida.
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Monica Gould, 212-871-3927
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Source: Milacron Holdings Corp.