Hillenbrand completes divestiture of minority stake in TerraSource

BATESVILLE, Ind. - Hillenbrand, Inc. (NYSE:HI), a company with a market capitalization of $1.48 billion, announced Tuesday it has completed the divestiture of its minority stake in TerraSource Holdings to Astec Industries in a transaction valued at approximately $245 million.

The company, which held the minority interest through a majority-stake joint venture partnership, received approximately $115 million from the sale. Hillenbrand stated the proceeds are being used to reduce its debt, which currently stands at $2.01 billion with a debt-to-equity ratio of 1.52. The company maintains strong liquidity with a current ratio of 1.51.

The transaction represents a complete exit from Hillenbrand’s investment in TerraSource Holdings, with Astec Industries acquiring the entire stake.

Hillenbrand describes itself as a global industrial company providing highly-engineered processing equipment and solutions across industries including durable plastics, food, and recycling.

The announcement was made through a press release statement issued by the company. No further details regarding the strategic rationale for the divestiture or its impact on future operations were provided.

In other recent news, Hillenbrand Inc. reported its second-quarter earnings for 2025, with earnings per share (EPS) of $0.60, exceeding the forecasted $0.55. The company’s revenue reached $716 million, surpassing expectations of $691.52 million. Despite this positive financial performance, Hillenbrand is facing challenges due to macroeconomic pressures, including tariffs and declining consumer confidence, which could impact future orders and revenue. In a strategic move, Hillenbrand announced a transition in its financial leadership as CFO Robert VanHimbergen is set to depart in June 2025, with Megan Walke stepping in as Interim CFO. Additionally, KeyBanc Capital Markets downgraded Hillenbrand’s stock rating from Overweight to Sector Weight, citing concerns over demand and sales declines, particularly affecting the company’s Applied Process Solutions segment. The downgrade reflects KeyBanc’s cautious stance amid economic uncertainty and market volatility. Hillenbrand is also actively seeking to address these challenges through strategic divestitures and cost control measures.

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