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Investing.com -- Hillenbrand, Inc. (NYSE:HI) stock soared 19% after the industrial equipment maker agreed to be acquired by private equity firm Lone Star Funds in an all-cash transaction valued at $32.00 per share, representing a total enterprise value of approximately $3.8 billion.
The purchase price offers a 37% premium over Hillenbrand’s unaffected closing share price on August 12, before rumors of a deal surfaced, and a 53% premium over the volume weighted average price for the 90 days ending on the same date.
The transaction, unanimously approved by Hillenbrand’s Board of Directors, follows a review of several strategic alternatives for the company. Upon completion of the deal, which is expected by the end of the first quarter of 2026, Hillenbrand will become a privately held company and its shares will no longer trade on the New York Stock Exchange.
"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 the Board of Directors.
Hillenbrand, which provides engineered processing equipment through its Advanced Process Solutions and Molding Technology Solutions segments, has repositioned its business over the past three years through strategic acquisitions and divestitures, with a focus on building out its industrial food equipment portfolio.
Donald Quintin, Chief Executive Officer of Lone Star, noted: "We are excited to partner with Hillenbrand, a high-quality operator in the industrial equipment sector."
The transaction remains subject to approval by Hillenbrand shareholders and regulatory clearances.
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