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Hillenbrand Completes Acquisition of Schenck Process Food and Performance Materials Business

Hillenbrand, Inc. has announced the successful completion of its acquisition of the Schenck Process Food and Performance Materials (FPM) business. The acquisition, valued at approximately $730 million, is expected to support Hillenbrand’s long-term profitable growth strategy by expanding its scale in the food end market, particularly within the lucrative pet food sector.

The acquisition of FPM brings several key benefits to Hillenbrand. Firstly, it adds complementary technologies and processing expertise, enhancing its product offerings and capabilities within the Advanced Process Solutions (APS) segment. This expansion will further solidify Hillenbrand’s presence in existing key end markets including food, durable plastics, and chemicals. By leveraging the applications and systems processing expertise of FPM, Hillenbrand can now offer even greater value to its customers and drive scale efficiencies.

In addition to the business synergies, the acquisition is expected to deliver financial benefits. Hillenbrand anticipates that the acquisition will be accretive to Adjusted EPS within the first full year of operation. Furthermore, it aims to achieve a return on invested capital (ROIC) in excess of the cost of capital by year five.

The acquisition marks a significant milestone for Hillenbrand as it continues to execute its strategy to grow as a pure-play industrial company. Kim Ryan, the President and CEO of Hillenbrand, expresses confidence that the transaction positions the company to deliver profitable growth and create compelling long-term shareholder value.

With headquarters in Kansas City, Missouri, FPM operates globally, employing over 1,300 people and serving customers in more than 150 countries. The majority of its revenues, approximately 85%, are generated in North America. FPM specializes in the design, manufacturing, and service of feeding, filtration, baking, and material handling technologies and systems.

The FPM business will be integrated into Hillenbrand’s APS segment, which focuses on highly-engineered industrial processing solutions and aftermarket parts and service. This segment serves various end markets and applications, including durable plastics, recycling, and processed food.

How AI legalese decoder Can Help

The AI legalese decoder can aid in simplifying and providing a clear understanding of the legal aspects of the acquisition. It can break down and explain the implications of statements such as “accretive to Adjusted EPS” and “ROIC in excess of cost of capital.” This tool clarifies the financial benefits of the acquisition and how it aligns with Hillenbrand’s long-term growth strategy.

Furthermore, the AI legalese decoder can assist in deciphering the risks and uncertainties mentioned in the disclosure of forward-looking statements. It can help identify and analyze potential factors that may affect Hillenbrand’s performance, such as global market conditions, supply chain disruptions, and geopolitical instability.

With its ability to decode complex legal language, the AI legalese decoder supports stakeholders in evaluating the acquisition and making informed decisions based on a comprehensive understanding of the situation.

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