Hillenbrand, a global industrial company specializing in engineered processing equipment and solutions, announced that it has entered into a definitive agreement to be acquired by an affiliate of Lone Star Funds. The all-cash deal values Hillenbrand at $32 per share, representing an enterprise value of approximately $3.8 billion.
The offer represents a 37% premium over Hillenbrand’s unaffected closing share price on August 12, 2025, and a 53% premium over its 90-day volume-weighted average price.
The agreement follows a thorough review by Hillenbrand’s Board of Directors of multiple strategic alternatives, after which the board unanimously approved the acquisition. Once completed, Hillenbrand will become a privately held company, and its shares will no longer trade on the New York Stock Exchange.
Hillenbrand has undergone a significant transformation over the past several years, repositioning itself as a focused industrial company through strategic acquisitions, divestitures, and the expansion of its industrial food equipment portfolio. And its operations are organized into two main segments, Advanced Process Solutions and Molding Technology Solutions—serving global customers across durable plastics, food, and recycling markets.
The acquisition by Lone Star marks the next phase of Hillenbrand’s evolution. Lone Star, an investment firm with 30 years of experience in private equity, credit, and real estate, plans to leverage its expertise in industrial manufacturing to support Hillenbrand’s continued growth. The firm has organized 25 private equity funds since its founding in 1995, with aggregate capital commitments totaling approximately $95 billion.
The deal is expected to close by the end of the first quarter of 2026, subject to customary closing conditions, including shareholder and regulatory approvals. Following the merger, Hillenbrand’s leadership team will continue to manage the company under private ownership.
Advisors/counsel: Advisors on the transaction include Evercore as financial advisor and Skadden, Arps, Slate, Meagher & Flom as legal counsel to Hillenbrand. Lone Star is being advised by Jefferies and UBS Investment Bank as financial advisors and Kirkland & Ellis as legal counsel.
KEY QUOTES:
“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. 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.”
Helen Cornell, Chairperson of the Board of Directors, Hillenbrand
“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. Lone Star recognizes this progress and sees a bright future, given our successful leading businesses and strong teams. We look forward to working with Lone Star to enhance our scale, create opportunities for our associates, and continue to drive growth and innovation within the durable plastics, food, and recycling end markets.”
Kim Ryan, President and Chief Executive Officer, Hillenbrand
“We are excited to partner with Hillenbrand, a high-quality operator in the industrial equipment sector. 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.”
Donald Quintin, Chief Executive Officer, Lone Star Funds
