Hillenbrand To Acquire Blackstone's FPM Business In $730 Mln Deal

(RTTNews) - Hillenbrand Inc. (HI) said that it agreed to acquire the Schenck Process Food and Performance Materials or "FPM" business, a portfolio company of Blackstone, for an enterprise value of about $730 million.

The transaction is expected to close during Hillenbrand's fiscal fourth quarter of 2023.

Headquartered in Kansas City, Missouri, FPM has over 1,300 global employees and sells to customers in over 150 countries, with approximately 85% of revenues generated in North America. FPM specializes in the design, manufacturing, and service of feeding, filtration, baking, and material handling technologies and systems that are highly complementary to the equipment and solutions currently offered in Hillenbrand's Advanced Process Solutions segment.

FPM is expected to generate calendar year 2023 revenue of approximately $540 million and approximately $68 million of EBITDA. Upon closing, FPM will become part of the Advanced Process Solutions segment.

Hillenbrand expects to use cash on hand and cash available under its revolving credit facility to fund this acquisition.