News Release
For Cincinnati Milacron: For Johnson Controls:
Albert Beaupre (513) 841-7241 Glen Ponczak (414) 228-2375
Cincinnati Milacron to Buy Uniloy
Plastics Machinery Division from Johnson Controls
______________________
Leading U.S. Lines of Blow Molding and Structural Foam Machinery
Will Complement Milacron's Plastics Technologies Group
CINCINNATI, OH, August 3, 1998 - Cincinnati Milacron Inc. (NYSE:
CMZ) and Johnson Controls Inc. (NYSE: JCI) today jointly
announced a definitive agreement under which Milacron will
purchase the assets of Johnson Controls' plastics machinery
business, the largest U.S. producer of blow molding systems, for
approximately $210 million.
With annual sales of about $190 million, Johnson Controls'
plastics machinery division (PMD) is known for its Uniloy brand
and is one of the world's leading producers of blow molding
machines - used in the production of beverage containers and
industrial components - as well as structural foam systems, for
the manufacture of household wares, furniture and appliances; and
aftermarket parts, services and molds for blow molding.
PMD/Uniloy employs 800 people worldwide and has major
manufacturing facilities in Manchester, Michigan; Milan and
Florence, Italy; and Berlin, Germany.
"Outstanding Strategic Opportunity"
"We are extremely proud of the achievements of our plastics
machinery division, its technological leadership, its reputation
for quality and integrity, and, most important, its people," said
John M. Barth, executive vice president of Johnson Controls, Inc.
"This is an outstanding strategic opportunity for our plastics
machinery division to continue to grow and expand, and, together
with Cincinnati Milacron, become a stronger player in the
plastics technologies global market."
"For Milacron: Synergistic and Additive to Earnings"
"We're paying a fair price for a stable, profitable operation
with the number-one market position, a strong management team and
good growth potential," said Daniel J. Meyer, Milacron's
chairman, president and chief executive officer. "Uniloy
complements our current businesses well, with very little overlap.
By capitalizing on several potential synergies in manufacturing,
technology and marketing, we expect Uniloy to be additive to Milacron's
earnings in 1999," he said.
The transaction, which Milacron will finance through cash on hand
and debt, is subject to customary closing conditions and
government regulatory approval and is expected to close in six to
eight weeks. No further terms of the agreement were disclosed.
World's Broadest Line Supplier
"With this addition, Cincinnati Milacron is clearly the world's
broadest line supplier of machines, systems, tooling and
components to the plastics processing industries," said Harold J.
Faig, Milacron's group vice president of plastics technologies,
to whom Uniloy will report. "The acquisition also means that
sales of our plastics technologies group should exceed $1 billion
in 1999.
"We're very excited about adding Uniloy to the Milacron family,"
Faig said. "While we already have a leading global position in
injection molding and extrusion, now, through Uniloy, Milacron
will be a major player in blow molding, the third-largest and
fastest-growing segment of the machinery market. This broadens
the end-markets that we serve with greater emphasis on the steady
and expanding sectors of rigid consumer packaging - specifically
for food, beverage, personal care items, cosmetics,
pharmaceuticals and household products - as well as industrial
packaging."
Uniloy Growing and Profitable
Uniloy's sales growth characteristics and profit margins are very
similar to Milacron's plastics technologies group as a whole,
Faig said. Its customer base is multinational and diverse, with
no single customer accounting for more than 4% of sales.
Aftermarket products and blow molds, traditionally high-margin
businesses, constitute close to 30% of Uniloy's sales.
"We will operate Uniloy as an independent, stand-alone unit, with
its own sales force and headquarters to remain in Manchester,
Michigan. And we will build on its market leadership in North
America and extensive global presence. Uniloy is currently
growing and profitable, but, combined with Cincinnati Milacron,
we see opportunities to boost Uniloy's sales and profits even
further through increased manufacturing efficiency, strategic
sourcing, sales and marketing synergies, and shared technology
and engineering," Faig added.
The above forward-looking statements 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
Item 2 of Cincinnati Milacron's most recent Form 10-Q on file
with the Securities and Exchange Commission.
Cincinnati Milacron, with 1997 sales of $1.9 billion, is a
leading global supplier to the metalworking and plastics-
processing industries. Products and related services include
plastics machinery, mold bases and related components, machine
tools, composites processing systems, metalcutting tools,
metalworking fluids, grinding wheels, carbide wear parts and
industrial magnets. Founded in 1884, the company employs 13,000
people in 30 major plants worldwide. Its shares are traded on
the New York Stock Exchange under the symbol CMZ.
Johnson Controls is a global market leader in automotive systems
and building controls. Through its Automotive Systems Group, it
supplies seating systems, interior systems and batteries. The
Controls Group serves the nonresidential buildings market with
control systems and services, and integrated facility management.
Founded in 1885, it operates from more than 500 locations
worldwide. Johnson Controls (JCI) securities are listed on the
New York Stock Exchange.
- Fact Sheet Attached -
Fact Sheet
Uniloy/Plastics Machinery Division of Johnson Controls, Inc.
Employees 800 people worldwide
1998 Estimated Sales $190 million
Product Lines Blow molding machinery
Structural foam machinery
Aftermarket parts, blow molds and services
Manufacturing Locations Manchester, Michigan - headquarters
Milan, Italy
Florence, Italy
Berlin, Germany
City of Industry, California
Policka Boriny, Czech Republic
End Markets Plastic containers
Beverage: juice and milk bottles
Food, cosmetics, toiletries, pharmaceuticals
Industrial packaging
Chemical products
Industrial components
Housewares
Furniture
Appliances
Automotive parts
Computer housings
Toys
Geographic Sales 59% North America
16 Europe
10 Asia
8 South America
7 Middle East/Africa