Hillenbrand has agreed to be acquired by Lone Star Funds in a transaction valued at $3.8 billion. The transaction was unanimously approved by Hillenbrand’s Board of Directors and is expected to close in the first quarter of 2026.
Hillenbrand is an industrial manufacturer of processing equipment which operates through two main segments: Advanced Process Solutions (APS) and Molding Technology Solutions (MTS). Customers of Hillenbrand include large OEMs and tiered suppliers operating in the automotive, medical devices, consumer packaging, construction materials, and food production sectors.
The APS segment focuses on material handling, feeding, extrusion, and compounding systems used in the plastics, food, chemicals, and recycling markets. Key brands within APS include Coperion (extruders), Rotex (screeners and separators), and LINXIS (mixing and ingredient automation systems).
The MTS segment serves the plastics processing industry with hot runner systems, molds, and injection molding machines. Hot runner systems are used in plastic injection molding to keep the plastic melted as it moves through the mold. The “runner” is the channel that carries the molten plastic from the machine into the mold cavities. In a cold runner system, the plastic cools and hardens in the runner, which creates extra waste that has to be trimmed off and often recycled. A hot runner system avoids that by keeping everything heated, so the plastic flows smoothly into the cavities without solidifying along the way. It cuts down on material waste and helps speed up production.
Key MTS products and brands include Mold-Masters (hot runner systems and temperature controllers), DME (mold bases, cooling products, and die sets), and Milacron (injection molding machines and extruders).
For the twelve months ending June 30, 2025, the pro forma adjusted EBITDA of Hillenbrand was approximately $424 million. Based on the enterprise valuation of $3.8 billion, this yields a purchase price multiple of just under 9x.
Hillenbrand was originally founded in 1906 as the Hillenbrand Funeral Services Company by John Hillenbrand. Today, the company is led by CEO Kim Ryan and employs more than 10,000 people, with manufacturing facilities in Germany, China, India, Canada, and the U.S. The company is headquartered 70 miles southeast of Indianapolis in Batesville, Indiana.
Over the past few years, Hillenbrand has reshaped its business to focus on core industrial markets. In March 2023, the company sold off Batesville Casket Company—which had been part of the company since its founding—to LongRange Capital for about $761 million, officially stepping away from the funeral industry. At the same time, Hillenbrand made a handful of strategic acquisitions to grow in areas like food processing and recycling. These include LINXIS Group in October 2022 (France), Herbold Meckesheim in September 2022 (Germany), and Peerless Food Equipment in January 2023 (Ohio). All of these fit into Hillenbrand’s push to build out its Advanced Process and Molding Technology segments and focus on long-term growth markets like plastics, food, and circular manufacturing.
“Hillenbrand has made tremendous progress transforming into a pure-play industrial company, reshaping our portfolio, and making strategic investments in the business,” said Kim Ryan, the president and CEO of Hillenbrand. “Lone Star recognizes this progress and sees a bright future, given our successful leading businesses and strong teams. We look forward to working with Lone Star to enhance our scale, create opportunities for our associates, and continue to drive growth and innovation within the durable plastics, food, and recycling end markets.”
Hillenbrand operates in the industrial processing equipment sector, which is currently seeing increased investment driven by long-term trends in reshoring, sustainability, and automation. According to Hillenbrand’s own investor materials and earnings reports, the company has aligned its strategy to target growth in end markets such as durable plastics, food, and recycling—areas expected to benefit from increased capital spending as manufacturers modernize operations and localize supply chains. Other supports for the company include demand tailwinds from regulatory pressure for decarbonization and waste reduction, particularly in food production and plastics reprocessing.
“We are excited to partner with Hillenbrand, a high-quality operator in the industrial equipment sector,” said Donald Quintin, the CEO of Lone Star. “Lone Star is fortunate to have a long track record in related industrial manufacturing, and our expertise will be brought to bear in partnering with Hillenbrand’s management team to invest in the business and help foster continued growth and innovation at the company.”
Lone Star Funds, headquartered in Dallas, invests in private equity, credit, and real estate opportunities with a specific interest in undervalued or underperforming assets. Since raising its first fund in 1995, Lone Star has organized 25 private equity funds with aggregate capital commitments totaling over $95 billion.
© 2025 Private Equity Professional | October 17, 2025
