Investment firm Lone Star Funds has agreed to acquire industrial equipment maker Hillenbrand in a $2.3 billion all-cash transaction, sending the company’s shares up about 19% in early trading. A Lone Star affiliate will pay $32 per share — a 30% premium over Hillenbrand’s prior closing price — with shares opening Monday at $31.41.
Including debt of roughly $1.5 billion, the deal carries a total enterprise value of about $3.8 billion and is expected to close by the end of the first quarter of 2026.
Hillenbrand manufactures industrial and recycling machinery, including plastic molding equipment and processing systems used in the food and materials sectors. The company, whose clients include Honda, Toyota, Shell, and Nestlé, has spent recent years refocusing its portfolio toward becoming a pure-play industrial business through strategic divestments.
Based in Batesville, Indiana, Hillenbrand will become part of Lone Star Funds’ $95 billion portfolio of private equity, credit, and real estate assets. Evercore is advising Hillenbrand on the deal, while Jefferies and UBS Investment Bank are advising Lone Star.
Source: Reuters
