UPDATED — Fresh off an NPE show where the company made a big splash, Milacron LLC — the largest U.S. plastics machinery company — has announced plans for an initial public offering.
The Cincinnati-based company on April 3 filed a Form S-1 with the U.S. Securities and Exchange Commission disclosing plans for an IPO on either the New York Stock Exchange or NASDAQ Global Market.
The company plans to raise an as-yet undisclosed amount of money for general corporate purposes, including repayment of outstanding debt. Milacron's private equity owner, CCMP Capital Advisors LLC, will continue to own more than 50 percent of the voting shares in the company, according to the S-1 filing.
For Milacron, an IPO would mark a return to the stock market. Milacron had been traded on the NYSE for years, until the stock exchange delisted the company in 2008, and the machinery maker moved to over-the-counter trading as the Great Recession slammed sales. Avenue Capital Group and other private equity firms took the company private after Milacron filed for Chapter 11 reorganization in 2009.
The economy — and plastics machinery sector — has rebounded strongly since the recession.
CCMP Capital Advisors bought the company in 2012. CCMP, which owned 78.8 percent of outstanding common stock at the end of 2014, will occupy three seats on the board of directors of the publicly traded Milacron, according to the S-1.
Milacron describes itself as a global leader in the $27 billion plastic technology and processing industry.
“We are the only global company with a full-line product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment,” the company said in the S-1. Milacron has “strong market positions across these products,” as well as leading positions in process control systems, mold bases and components, maintenance, repair and operating supplies for plastics equipment.
Milacron claims leading market shares in several key products:
• No. 1 in plastics processing equipment in North America.
• No. 1 in injection presses in India.
• No. 2 in hot runners globally. That includes No. 1 positions in North America and Europe, and No. 2 in Asia.
Milacron generated 2014 sales of $1.211 billion, according to the S-1. The company posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $198.5 million, and adjusted net income of $74.5 million, but a net loss of $14.9 million.
That compares to 2013 sales of $1.028 billion. Adjusted EBITDA for 2013 was $161.6 million, adjusted net income was $57 million and Milacron posted a net loss of $24.7 million in 2013.
The company employs more than 5,000.