Hillenbrand to Go Private in $3.8B Deal with Lone Star Funds
The private equity firm's all-cash offer of $32 per share represents a substantial premium for the industrial equipment manufacturer.
Industrial equipment company Hillenbrand (NYSE: HI) is set to go private after to be acquired by an affiliate of private equity firm Lone Star Funds. The deal is an all-cash transaction with an .
Under the terms of the agreement, Hillenbrand shareholders will receive $32.00 in cash for each share they own. This price represents a significant premium of approximately 37% over the company's unaffected closing share price on August 12, 2025, and a 53% premium over its 90-day volume-weighted average price, signaling a strong valuation that investors have responded to positively.
The transaction, which has been , is expected to close by the end of the first quarter of 2026. The completion is subject to customary closing conditions, including approval from Hillenbrand's shareholders and the receipt of regulatory clearances. Upon the deal's conclusion, Hillenbrand's shares will no longer be traded on the New York Stock Exchange.
Hillenbrand has been a key player in the industrial sector, providing to a wide range of industries through its Advanced Process Solutions and Molding Technology Solutions segments. In recent years, the company has engaged in a strategic repositioning of its portfolio, a move that appears to have culminated in the acquisition by Lone Star Funds.
For Lone Star, the acquisition adds a significant industrial manufacturing asset to its diverse portfolio. Taking Hillenbrand private will allow for long-term strategic initiatives and operational adjustments away from the pressures and quarterly demands of the public markets.