BAYSIDE CAPITAL ACQUIRES MILACRON'S SERIES B PREFERRED STOCK
Miami, FL – October 3, 2007 – Milacron Inc. (NYSE: MZ), a leading global supplier of plastics-processing technologies and industrial fluids, announced that the board of directors has approved the purchase by an affiliate of Bayside Capital, Inc. of a majority of the company's 6% Series B convertible preferred stock, 57.5% of the total, from Glencore Finance AG, the original holder of the shares first issued in 2004.
"We are very encouraged by this investment," said Ronald D. Brown, Milacron chairman, president and chief executive officer. "Bayside has an excellent reputation and a proven track record of successful investment in industrial companies. We believe the financial, strategic and operational expertise that Bayside can provide will play an important role in driving our long-term success, both in terms of profitable growth in world markets and value creation for our shareholders."
"We are looking forward to our involvement with Milacron," said John Bolduc, managing director of Bayside Capital. "The company has an experienced management team, leading market position and is well positioned to take advantage of the opportunities in its markets."
Milacron's Series B holders are entitled to majority representation on the board. Consequently, the board has approved the appointment of Bayside representatives John Bolduc, John Caple, Tiffany Kosch and Lewis Schoenwetter to the board of directors. They replace Series B directors Mark Jacobson, Duane Stullich, Thomas Thompson and Brent Williams, who have resigned.
The transaction will constitute an ownership change for U.S. federal income tax purposes, which will limit Milacron's future use of pre-change net operating loss carryforwards. Consequently, in addition to transaction-related charges of approximately $2 million, most of which are non-cash, the company also expects to record a non-cash writedown of deferred tax assets of approximately $63 million in the fourth quarter.
The forward-looking statements above by their nature involve risks and uncertainties that could significantly impact operations, markets, products and expected results. For further information please refer to the Cautionary Statement included in the company's most recent Form 10-Q on file with the Securities and Exchange Commission.
About Milacron
First incorporated in 1884, Milacron is a leading global supplier of plastics-processing technologies and industrial fluids, with major manufacturing facilities in North America, Europe and Asia. For further information, visit www.milacron.com or call the toll-free investor line: 800-909-MILA (800-909-6452).
About Bayside Capital
Bayside Capital is a private investment firm which actively invests in the debt and equity of middle market companies that can benefit from operational enhancements, improved access to capital, or balance sheet realignments. With the ability to provide capital through a broad array of securities including senior and subordinated debt, equity, Debtor-In-Possession facilities, and special situation loans, Bayside has the experience and resources to help companies quickly resume growth initiatives and improve their strategic position. Bayside is an affiliate of H.I.G. Capital. For more information, please refer to the Bayside Capital website at www.bayside.com.
About H.I.G. Capital
H.I.G. Capital L.L.C. ("H.I.G.") is a leading global private equity investment firm with more than $7.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco in the U.S., as well as, affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. has completed more than 200 transactions. The firm currently manages a portfolio of more than 75 companies with combined revenues in excess of $7 billion. For more information, please refer to the H.I.G. website at www.higcapital.com. |
