Hillenbrand To Acquire Schenck Process' FPM Business For $730M, Amplifying Its North American Presence

  • Hillenbrand Inc HI has entered into a definitive agreement to acquire the Schenck Process Food and Performance Materials (FPM) business, a portfolio company of Blackstone Inc BX.
  • The enterprise value of the transaction is $730 million.
  • The transaction is expected to close during Hillenbrand's fiscal fourth quarter of 2023.
  • The deal is expected to expand Hillenbrand's North American footprint and augment the processing capabilities of the Advanced Process Solutions segment across existing key end markets including durable plastics and chemicals
  • The acquisition is expected to be accretive to Adjusted EPS within the first full year and deliver ROIC in excess of the cost of capital by the fifth year.
  • Headquartered in Kansas City, Missouri, FPM has over 1,300 global employees and sells to customers in over 150 countries, with 85% of revenues generated in North America.
  • It specializes in the design, manufacturing, and service of feeding, filtration, baking, and material handling technologies.
  • "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," said President and CEO Kim Ryan.
  • Hillenbrand held $315.9 million in cash and equivalents as of March 31, 2023.
  • Price Action: HI shares closed lower by 1.57% at $47.78 on Wednesday.
  • Now Read: Nvidia Q1 Earnings Preview: Will Stock See A Repeat Of The Q4 Surge?
  • Photo: Shutterstock
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