Lone Star Funds acquires Hillenbrand for $3.8B

Hillenbrand, a global industrial company headquartered in Batesville, Indiana, that provides equipment for industries such as durable plastics, food and recycling, has been acquired by Lone Star Funds, a Dallas-based private equity firm. 

Hillenbrand entered an agreement to be acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at $32 per share, equating to an enterprise value of about $3.8 billion. 

The company says the purchase price represents a premium of approximately 37 percent over Hillenbrand’s unaffected closing share price Aug. 12 and a premium of 53 percent over the volume-weighted average price of Hillenbrand common stock for the 90 days ended Aug. 12.  

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Hillenbrand provides engineered processing equipment and solutions to customers through its Advanced Process Solutions and Molding Technology Solutions segments. Its brands include Coperion and Herbold Meckesheim. Over the past three years, Hillenbrand says it has repositioned the business, strengthening and streamlining its portfolio through acquisitions and divestitures and building its industrial food equipment portfolio. 

The Hillenbrand board of directors unanimously approved the transaction, according to the company, and reviewed several strategic alternatives for the company prior to the agreement. 

“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,” says Helen Cornell, Hillenbrand 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.” 

The transaction is expected to close by the end of the 2026 first quarter 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 the announcement, Hillenbrand says that for its fourth-quarter and fiscal year 2025 earnings announcement, scheduled for Nov. 19, it will issue a press release but will not hold a conference call and webcast or issue financial guidance for fiscal year 2026.  

“We are excited to partner with Hillenbrand, a high-quality operator in the industrial equipment sector,” says Lone Star CEO Donald Quintin. “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.”