Milacron Holdings (MCRN) Posts Q3 GAAP Loss of 17c/Share; Enters Agreement to Acquire CanGen

Milacron Holdings (NYSE: MCRN) reported Q3 EPS of ($0.17), $0.58 worse than the analyst estimate of $0.41. Revenue for the quarter came in at $292.7 million versus the consensus estimate of $316.55 million.

Adjusted net income totaled $25.7 million in the third quarter of 2015 compared to adjusted net income of $20.3 million in the prior year period.

Milacron also 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.

For earnings history and earnings-related data on Milacron Holdings (MCRN) click here.

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