Bayside Capital buys Milacron's series B preferred stock

By Lisa Kerner

Charlotte, N.C., Oct. 3 - Milacron Inc.'s board of directors approved the sale of a majority of the company's 6% series B convertible preferred stock, or 57.5% of the total, to an affiliate of Bayside Capital, Inc. by Glencore Finance AG, the original holder of the shares first issued in 2004.

As a result of the sale, Bayside representatives John Bolduc, John Caple, Tiffany Kosch and Lewis Schoenwetter were appointed to Milacron's board to replace resigning series B directors Mark Jacobson, Duane Stullich, Thomas Thompson and Brent Williams.

"We are very encouraged by this investment," Milacron chairman, president and chief executive officer Ronald D. Brown said in a company news release.

"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," Brown added.

In addition to transaction-related charges of some $2 million, most of which are non-cash, Milacron expects to record a non-cash writedown of deferred tax assets of approximately $63 million in the fourth quarter, the release stated.

Milacron is a Cincinnati-based supplier of plastics-processing technologies and industrial fluids.

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