USA- Hillenbrand Inc., a diversified industrial company, has acquired Schenck Process Food and Performance Materials (FPM) for an enterprise value of approximately US$730 million.
Hillenbrand provides highly engineered, mission-critical processing equipment and solutions to customers in over 100 countries around the world, and its portfolio is composed of leading industrial brands serving large end markets, including durable plastics, food, and recycling.
On the other hand, FPM is a leading provider of feeding, filtration, baking, and material handling technologies and systems for the food, durable plastics, and chemicals industries.
Headquartered in Kansas CityFPM has more than 1,300 employees globally, and has customers in more than 150 countries, with approximately 85% of revenues generated in North America.
First announced in May this year, the acquisition is expected to strengthen further Hillenbrand’s leadership position in these attractive and growing end markets.
FPM’s broad product portfolio and global reach will complement Hillenbrand’s existing offerings, and the combined company will be well-positioned to meet the needs of its customers.
“The completion of the FPM acquisition is a significant milestone in our growth strategy. This acquisition further strengthens our leadership position across attractive, growing end markets and positions us to deliver profitable growth and compelling long-term shareholder value,” Kim Ryan, president and CEO of Hillenbrand, remarked.
FPM will join Hillenbrand’s Advanced Process Solutions (APS) segment, which provides industrial processing solutions and aftermarket parts and services for a variety of end markets and applications.
By deploying the Hillenbrand Operating Model, the company is well-positioned to offer greater value to our customers and drive scale efficiencies, and adding FPM will expand APS’s product portfolio and geographic reach, and create a more comprehensive offering for customers.
The acquisition is expected to be accretive to Hillenbrand’s adjusted earnings per share within the first full year. It is also likely to deliver a return on invested capital (ROIC) in excess of the company’s cost of capital by year five.
According to Hillenbrand, FPM could generate full calendar year 2023 revenue of approximately US$540 million and approximately US$68 million of EBITDA.
“I am confident this transaction further positions us to deliver profitable growth and compelling long-term shareholder value,” Kim Ryan added.
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