BATESVILLE, Ind. — Hillenbrand Inc., headquartered in Batesville, has finalized a substantial real estate deal involving its Ohio-based subsidiary, Milacron LLC. The transaction, valued at $54.9 million, is a sale-leaseback arrangement for two industrial properties in the state.
According to a recent filing with the U.S. Securities and Exchange Commission, Milacron has agreed to transfer ownership of the properties to two limited liability companies linked with Chicago’s Blue Owl Real Estate Capital LLC. Under the terms of the agreement, Milacron will lease the properties back from Blue Owl at an annual rate of approximately $5 million. As a result, while Milacron will continue operating from these sites, it will do so as a tenant rather than as a property owner.
The lease agreement features a 20-year initial term, with four additional five-year renewal options.
Hillenbrand, known for its industrial manufacturing equipment across diverse sectors—including plastics, chemicals, recycling, food, and pharmaceuticals—acquired Milacron in 2019. Milacron, headquartered in Batavia, Ohio, specializes in plastics processing equipment.
Milacron’s facilities include U.S. locations in Batavia and Mount Orab, Ohio; Norcross, Georgia; and McPherson, Kansas, as well as international sites in Mexico, India, Brazil, and Germany.
The SEC filing does not indicate a specific closing date for the deal. Attempts to reach Hillenbrand’s spokesperson for additional comment were unsuccessful as of Tuesday afternoon.
Hillenbrand plans to allocate the proceeds from this sale towards general corporate needs, including reducing long-term debt. Debt reduction has been identified as a strategic priority for the company.
In its third-quarter financial report, released in August, Hillenbrand reported a net debt of $1.87 billion, with a debt-to-EBITDA ratio of 3.5X. The company’s CFO, Bob VanHimbergen, emphasized that debt reduction remains a key focus, despite ongoing challenges posed by a sluggish demand environment.
The third-quarter financial report also revealed a loss of $249 million, or $3.53 per share, against a revenue of $787 million.
