Sponsor 3i agrees to sell Canada’s Mold Masters to Milacron in $970m deal

UK private equity firm 3i Group plc (LON:III) on Tuesday announced a CAD975m (USD969.1m/EUR724m) deal to sell Canadian melt delivery and control systems specialist Mold-Masters Ltd to plastics processing solutions provider Milacron LLC.

Georgetown-based Mold-Masters designs and makes advanced hot runner systems, temperature controllers and auxiliary equipment for the plastic sector. 3i made its initial investment of CAD166m in the company in 2007 and has since helped its growth in Asia, Europe and South America through organic projects and acquisitions, it said.

The deal with Milacron was reached at the end of an auction process initiated by 3i late last year, the vendor said, adding it also serves its portfolio restructuring strategy announced last June.

3i will pocket proceeds of some GBP219m (USD343m/EUR256.2m) from its Mold-Masters exit, compared to an opening value of GBP115m at 31 March 2012 and a value of GBP158m as 31 December 2012.

The vendor expects completion of the sale by April 2013, pending regulatory clearances, it said.