Lone Star to Acquire Hillenbrand for $32/Share in $3.8B Takeover!

The global industrial equipment group Hillenbrand, Inc. announced on October 15, 2025 that it has entered into a definitive agreement to be acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at $32.00 per share, equating to an enterprise value of roughly $3.8 billion.

Hillenbrand operates through two primary segments, Advanced Process Solutions and Molding Technology Solutions, and has spent several years repositioning the portfolio through selective acquisitions and divestitures to reinforce its leadership in the durable plastics, food processing, and recycling end-markets. The company has emphasized scale and focused capabilities as it evolved into a more streamlined industrial platform.

The acquisition terms imply a generous premium for shareholders: approximately 37% above Hillenbrand’s unaffected close on Aug. 12, 2025, and about 53% above the 90-day VWAP through the same date, signaling a strong value proposition for investors and a high-conviction stance from the buyer.

Chairman of Hillenbrand’s Board, Helen Cornell, stated that the board explored a range of strategic alternatives and concluded the all-cash proposal best serves shareholders. Kim Ryan, Hillenbrand’s President and CEO, framed the move as a continuation of the company’s progress toward a pure-play industrial model, emphasizing opportunities to accelerate growth and innovation with the backing of Lone Star’s industrial operating expertise.

Donald Quintin, CEO of Lone Star Funds, described Hillenbrand as a high-quality operator and highlighted the firm’s track record of collaborating with portfolio companies to scale manufacturing and technology initiatives. The transaction is expected to close by the end of the first quarter of calendar year 2026, subject to customary closing conditions, including Hillenbrand shareholder approval and regulatory clearances. Advisors for Hillenbrand include Evercore as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel, while Jefferies and UBS Investment Bank advised Lone Star with Kirkland & Ellis representing the seller.