Injection molding machine maker Milacron Inc. (Batavia, OH; www.milacron.com) announced that its board of directors has approved the sale of 57.5% of the company’s 6% Series B convertible preferred stock by Glencore Finance AG, the original holder of the shares first issued in 2004, to Bayside Capital Inc. (an affiliate of HIG Capital).
The U.S. government views the transaction as an ownership change for federal income tax purposes, so Milacron’s future use of prechange net operating loss carryforwards is limited. The press manufacturer expects to record a noncash writedown of deferred tax assets of about $63 million in Q4 2007, in addition to transaction-related charges of roughly $2 million (mostly noncash).
As Series B stockholders are entitled to majority representation on the board, directors Mark Jacobson, Duane Stullich, Thomas Thompson, and Brent Williams resigned to make way for four Bayside representatives.
