Lone Star Funds completed an all‑cash acquisition of Hillenbrand, Inc. on February 10, 2026, valuing the industrial‑equipment maker at approximately $3.8 billion in enterprise value. Hillenbrand will continue to operate under its own name, but its common stock has ceased trading and will be delisted from the New York Stock Exchange.
The transaction was structured as a $32.00 per share cash offer, representing a premium of roughly 37% over Hillenbrand’s unaffected closing price on August 12, 2025 and about 53% over the 90‑day volume‑weighted average price. The all‑cash nature of the deal eliminated execution risk for shareholders and provided an immediate, certain return.
Strategically, the deal builds on Hillenbrand’s recent repositioning, which included divestitures of non‑core assets such as Milacron and TerraSource. The company has sharpened its focus on durable plastics, food, and recycling markets—sectors that have benefited from increased demand for sustainable processing solutions. Lone Star’s experience in industrial manufacturing, highlighted by its prior acquisition of SPX Flow, positions it to accelerate growth and operational efficiency within Hillenbrand’s core businesses.
Financially, Hillenbrand’s most recent quarter saw revenue decline 4% year‑over‑year to $2.89 billion, driven by a contraction in legacy segments. Operating margin slipped to 9.9% from 10.2% in the prior year, reflecting pricing pressure in those legacy markets. However, the company’s core segments maintained stable margins, supporting the premium paid by Lone Star.
Management emphasized the strategic fit in the post‑deal statements. Hillenbrand President and CEO Kim Ryan said the transaction would allow the company to build on its momentum and execute strategic plans with Lone Star’s capital and expertise. Lone Star CEO Donald Quintin highlighted the firm’s track record in industrial sectors and its commitment to invest in Hillenbrand’s high‑quality operations.
The acquisition will remove Hillenbrand from public reporting requirements, enabling long‑term initiatives without market‑pressure constraints. It also triggered a comprehensive refinancing of the company’s debt, including new credit facilities and the issuance of senior secured notes, improving the capital structure and reducing leverage.
Investors welcomed the all‑cash offer and substantial premium, viewing the deal as a definitive exit and a confidence boost for Hillenbrand’s future under private ownership.
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