Hillenbrand Inc (NYSE: HI) announced on Wednesday an agreement to be acquired by private equity firm Lone Star Funds in an all-cash transaction valued at $32 per share, representing an enterprise value of about $3.8 billion.
Upon completion of the transaction, Hillenbrand will become a privately held company, and its shares will be delisted from the NYSE.
"Over the past several years, Hillenbrand has made tremendous progress transforming into a pure-play industrial company, reshaping our portfolio, and making strategic investments in the business," Hillenbrand CEO Kim Ryan said in a statement.
"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 provides highly-engineered processing equipment and solutions to customers globally through its Advanced Process Solutions and Molding Technology Solutions segments.
Over the past three years, the company has streamlined its business through strategic acquisitions and divestitures while building out its industrial food equipment portfolio.
The transaction is expected to close by the end of the first quarter of calendar year 2026.
Hillenbrand shares surged 18% to $31.26 in late-morning trading on Wednesday.