"We are pleased to reach this agreement with Lone Star, which delivers immediate and certain cash value to our shareholders at a substantial premium to recent trading, and positions Hillenbrand to continue meeting and exceeding customers' needs for highly-engineered, mission-critical processing equipment and solutions," said Helen Cornell, Chairperson of the Board of Directors. "The Board carefully reviewed a range of potential strategic alternatives, including interest from a number of parties, and determined that this transaction is in the best interest of Hillenbrand and its shareholders."
"Over the past several years, Hillenbrand has made tremendous progress transforming into a pure-play industrial company, reshaping our portfolio, and making strategic investments in the business," said Kim Ryan, President and Chief Executive Officer of Hillenbrand. "Lone Star recognizes this progress and sees a bright future, given our successful leading businesses and strong teams. We look forward to working with Lone Star to enhance our scale, create opportunities for our associates, and continue to drive growth and innovation within the durable plastics, food, and recycling end markets."
"We are excited to partner with Hillenbrand, a high-quality operator in the industrial equipment sector," said Donald Quintin, Chief Executive Officer of Lone Star. "Lone Star is fortunate to have a long track record in related industrial manufacturing, and our expertise will be brought to bear in partnering with Hillenbrand's management team to invest in the business and help foster continued growth and innovation at the company. We are honored to be the partners to take the Hillenbrand name and dedicated team into the next chapter of success."
The Hillenbrand Board of Directors unanimously approved the transaction. This agreement comes following the Hillenbrand Board of Directors' review of several strategic alternatives for the company.
Transaction Details
The transaction is expected to close by the end of the first quarter of calendar year 2026 and is subject to customary closing conditions, including approval by Hillenbrand shareholders and receipt of required regulatory approvals.
Upon completion of the transaction, Hillenbrand will become a privately held company, and Hillenbrand's shares will no longer trade on the New York Stock Exchange.
As a result of this announcement, for its fourth quarter and fiscal year 2025 earnings announcement scheduled for November 19, 2025, Hillenbrand will issue a press release but will not hold a conference call and webcast. In addition, Hillenbrand will not issue financial guidance for fiscal year 2026.
Advisors
Evercore is serving as financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Hillenbrand. Jefferies LLC and UBS Investment Bank are serving as financial advisors and Kirkland & Ellis is serving as legal counsel to Lone Star.
Source and full article: PRNewswire
