Hillenbrand Enters Agreement to Sell to Lone Star for $32.00 per Share in Major Acquisition

Hillenbrand's Strategic Acquisition by Lone Star Funds

Hillenbrand, Inc. (NYSE: HI), a prominent player in the industrial equipment sector, recently announced a significant agreement to be acquired by an affiliate of Lone Star Funds in a transaction valued at $32.00 per share. This acquisition translates to an enterprise value of approximately $3.8 billion, marking a notable event in the industrial realm.

Premium Offer for Shareholders

The purchase price reflects a compelling premium of around 37% over Hillenbrand's unaffected closing share price from August 12, 2025. Additionally, it signifies a 53% increase over the volume weighted average price of Hillenbrand common stock for the 90 days preceding that date. This robust offer presents immediate and certain cash value for shareholders, a point emphasized by Helen Cornell, Chairperson of the Board of Directors.

In her statement, Cornell underscored that the board reviewed multiple strategic options before concluding that this transaction remains in the company's best interest. She articulated a commitment to meeting and exceeding customer expectations with Hillenbrand’s highly engineered, mission-critical processing equipment and solutions.

Kim Ryan, President and Chief Executive Officer of Hillenbrand, reflected on the company’s transformative journey into a pure-play industrial entity. He expressed optimism for the future, citing Lone Star’s recognition of Hillenbrand’s progress in reshaping its portfolio through targeted investments and strategic acquisitions. Ryan's vision includes enhancing scale and creating ample opportunities for employees while continuing growth and innovation in key markets such as durable plastics, food, and recycling.

Partnership with Lone Star

Donald Quintin, Chief Executive Officer of Lone Star, shared enthusiasm about the partnership, highlighting Hillenbrand as a high-quality operator within the industrial equipment landscape. He described Lone Star’s extensive experience in industrial manufacturing as a valuable asset. Together, they aim to capitalize on Hillenbrand's existing strong teams and businesses, propelling further growth and innovation in the sector.

This strategic alliance was unanimously approved by Hillenbrand's Board of Directors, paving the way for significant advancements moving forward. The transaction is anticipated to close by the end of the first quarter of calendar year 2026, contingent upon customary closing conditions, including shareholder approval and necessary regulatory approvals. Following the successful completion, Hillenbrand is set to transition into a privately-held company, with its shares ceasing to trade on the New York Stock Exchange.

Future Implications for Hillenbrand

In light of this agreement, Hillenbrand has announced that it will issue a press release for its fourth quarter and fiscal year 2025 earnings, scheduled for November 19, 2025, but won’t conduct a conference call or webcast. Furthermore, the company will refrain from issuing financial guidance for fiscal year 2026, signaling a refocused strategy post-acquisition.

This acquisition underscores the dynamic nature of the industrial sector, with Hillenbrand positioned to thrive under Lone Star's strategic direction. As both entities prepare to embark on this new chapter, stakeholders and industry watchers remain eager to see how this partnership evolves and the opportunities it creates within the industrial equipment domain. The acquisition marks a significant milestone, not only for Hillenbrand but for Lone Star as well, as they aim to harness combined strengths to drive future innovations and continued success.

Conclusion

As the industrial landscape continues to shift, Hillenbrand's acquisition by Lone Star Funds stands out as a pivotal development. The agreement promises enhanced value for shareholders and sets the stage for a new era focused on growth and innovation in critical processing equipment markets. Investors and interested parties are encouraged to monitor upcoming updates and developments as this transaction progresses.