Hillenbrand Inc., a manufacturing company based in Batesville, IN, has entered into a definitive agreement to be acquired by an affiliate of Lone Star Funds in a $3.8 billion all-cash transaction. The deal, which was announced today, will result in Hillenbrand becoming a privately held company.
The agreement values Hillenbrand at $32 per share, representing a 37% premium over its closing stock price as of August 12, 2025. Additionally, the offer reflects a 53% premium over the company's 90-day volume-weighted average price ending on the same date. Hillenbrand's board of directors unanimously approved the transaction following a detailed review of strategic alternatives.
Strategic shift for Hillenbrand
Over the past three years, Hillenbrand has undergone a significant transformation, evolving into a focused industrial equipment manufacturer. By executing a series of acquisitions and divestitures, the company has strengthened its presence in core markets, including plastics and chemicals, food processing, recycling, and pharmaceuticals.
"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", said Helen Cornell, chairperson of Hillenbrand's board. "The board carefully reviewed a range of potential strategic alternatives and determined that this transaction is in the best interest of Hillenbrand and its shareholders."
Kim Ryan, Hillenbrand's president and CEO, highlighted the company’s successful repositioning efforts over recent years. "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", Ryan said. "Lone Star recognizes this progress and sees a bright future, given our successful leading businesses and strong teams."
Lone Star's perspective and expertise
Lone Star Funds, a private equity firm with a history of investments in industrial sectors, sees Hillenbrand as a valuable addition to its portfolio. The acquisition positions Lone Star to leverage Hillenbrand's expertise in advanced processing equipment and solutions, particularly in plastics, food processing, and recycling markets.
"We are excited to partner with Hillenbrand, a high-quality operator in the industrial equipment sector", said Donald Quintin, CEO 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."
Timeline and transaction details
The acquisition is expected to close by the end of the first quarter of 2026, subject to shareholder approval and regulatory clearance. Once finalized, Hillenbrand's shares will cease trading on the New York Stock Exchange, marking its transition to a privately held company.
Hillenbrand recently completed several strategic transactions ahead of this announcement. In July 2025, the company sold its minority interest in TerraSource Holdings to Astec Industries for $245 million. Earlier in March 2025, Hillenbrand finalized its sale of a majority stake in the Milacron injection molding and extrusion business to Bain Capital for $287 million.
The company plans to release its fourth-quarter and fiscal 2025 earnings results on November 19, 2025. However, it will not hold its customary conference call or webcast, and financial guidance for fiscal 2026 has been suspended due to the pending acquisition.
Evercore served as Hillenbrand's financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel. Lone Star was advised by Jefferies LLC and UBS Investment Bank, with legal representation from Kirkland & Ellis.
As Hillenbrand and Lone Star prepare for the transition, both parties remain optimistic about the opportunities ahead.
.png)
%20Loan%20Application%20Checklist.png)
