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7/12, 3:59 PM (Source: TeleTrader)
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Milacron spikes on buyout deal with Hillenbrand

Milacron Holdings Corp. surged on Friday upon the announcement it would be bought out by Hillenbrand Inc. The Ohio-based producer of plastics processing systems hit $16.97 per share, its highest point since October 23 after agreeing to be sold for $2 billion. The buyer is also about to be burdened with $686 million in debt. The processing equipment maker and supplier of urns and caskets said it would pay $11.8 in cash and 0.1612 of its shares per share in the target entity, equivalent to $18.07 apiece or a 34% premium to yesterday's closing price.

Accretive growth in adjusted earnings per share in the first year after the execution of the deal, seen in the first quarter, may reach double digits, Hillebrand estimated. The terms of the acquisition mean it would control 84% of the combined company with the rest for Milacron's shareholders. The press release adds free cash flow from the takeover is projected at $325 million by 2021.

Milacron was 23.43% higher at $16.7 per share at 9:43 am ET. Hillenbrand fell 11.9% to $34.24 per share after dropping to $33.75, the lowest since November 2016.

Breaking the News / IT