Milacron will acquire 100 percent of hot-runner manufacturer Mold-Masters’s shares for $975 million. Milacrons Cimcool industrial fluids segment supplies metalworking and industrial fluids.
Hot-runner systems are used in molds for thermoplastics.
Subject to closing conditions, the transaction is expected to close in the first half of 2013.
This transaction is a major step in Milacrons strategic growth plan, said Tim Walsh, a managing director of CCMP Capital Advisors, the private equity firm that owns Milacron.
Following the acquisition, the company will have five businesses: Cimcool, Milacron (plastics machinery), Mold-Masters (hot runners), DME (mold base technologies) and Aftermarket (parts and service).
According to Milacron, the combined company will have greater opportunities for global growth.
Milacron CEO Tom Goeke will lead the combined entity, and Mold Masters President and CEO Bill Barker will continue to lead that business.