Hillenbrand announced on 24 May 2023 that it has entered into a definitive agreement to acquire the Schenck Process Food and Performance Materials (“FPM”) business, a portfolio company of Blackstone, for an enterprise value of approximately US$730 million. The transaction is expected to close during Hillenbrand’s fiscal fourth quarter of 2023, subject to regulatory approvals and other customary closing conditions.
Headquartered in Kansas City, Missouri, FPM has over 1300 global employees and sells to customers in over 150 countries, with approximately 85% of revenues generated in North America.
FPM operates in the design, manufacturing, and service of feeding, filtration, baking, and material handling technologies and systems that are highly complementary to the equipment and solutions currently offered in Hillenbrand’s Advanced Process Solutions segment. Upon closing, FPM will become part of the Advanced Process Solutions segment.
“With this acquisition, we further strengthen our leadership across the attractive, growing end markets of food, durable plastics and chemicals, through strong brands that enhance the breadth of our technology and service capabilities,” explained Kim Ryan, President and CEO of Hillenbrand. “By combining the applications and systems processing expertise of our Advanced Process Solutions segment with FPM, we will be positioned to offer greater value to our customers and drive scale benefits across manufacturing, engineering, and procurement.
“Over the last twelve months, we’ve divested our legacy death care segment, and acquired high-quality industrial businesses that serve large, attractive end markets that are underpinned by long-term, secular growth trends. These actions have significantly transformed Hillenbrand into a global leader in highly-engineered, mission-critical industrial processing solutions. I am confident this transaction further positions us to deliver compelling long-term shareholder value.”
Hillenbrand noted that the acquisition of FPM will enable it to expand its further capabilities, improve scale in food categories – particularly pet food – and access FPM’s technology portfolio, complementary to its Advanced Process Solutions segment.
Hillenbrand expects to use cash on hand and cash available under its revolving credit facility to fund this acquisition.
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