Husky Injection Molding Systems Ltd, a Canadian supplier of injection molding equipment to the global plastics industry, has hired investment bank Goldman Sachs Group Inc to explore a sale that it hopes could value it at close to US$4 billion, including debt, according to people familiar with the matter.
The move comes two years after a private equity peer of Husky, Milacron Holdings Corp, went public in a US$286 million initial public offering, following a string of acquisitions in an industry that is increasingly consolidating.
U.S. buyout firm Berkshire Partners LLC and the private equity arm of Ontario Municipal Employees Retirement System (OMERS) have asked Goldman Sachs to run an auction for Husky, the four sources said this week.
Husky is expected to have earnings before interest, tax, depreciation and amortization this year of more than US$350 million, the sources added, asking not to be identified because the deliberations are confidential.
Berkshire Partners and Goldman Sachs declined to comment, while Husky and OMERS did not respond to requests for comment.
Based in Bolton, Ontario, Husky manufactures equipment that is used to produce a wide range of products for the beverage packaging, closures, thinwall packaging, medical, and consumer electronics markets. It sells its products in more than 100 countries.
Berkshire Partners and OMERS acquired Husky for US$2.1 billion in 2011 from Canadian buyout firm Onex Corp.
Update: Onex bought Husky for about $960 million in 2007.
(Reporting by Greg Roumeliotis in New York; Editing by Lisa Shumaker)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Husky Injection Molding Systems Ltd