Private equity firm Lone Star Funds has agreed to acquire Hillenbrand Inc, a US-based industrial equipment manufacturer, in a $2.3bn all-cash transaction, marking the latest large-cap industrials take-private in 2025’s busy deal calendar, according to a report by Reuters.
Under the terms of the agreement, a Lone Star affiliate will pay $32 per share, representing a 30% premium to Hillenbrand’s last closing price. Including assumed debt of around $1.5bn, the deal values the company at approximately $3.8bn. The transaction is expected to close by the end of Q1 2026, subject to regulatory approvals.
Headquartered in Batesville, Indiana, Hillenbrand supplies manufacturing and processing equipment for sectors including plastics, recycling, food, and industrial materials. The company has spent recent years reshaping its portfolio to become a pure-play industrial systems provider, exiting non-core segments through a series of divestments.
Hillenbrand’s clients include major industrial and consumer brands such as Honda, Toyota, Shell, and Nestlé.
The acquisition adds to Lone Star’s $95bn in assets under management, spanning private equity, credit, and real estate, and reinforces the firm’s strategic focus on acquiring mature industrial businesses with stable cash flows and opportunities for operational optimisation.
Evercore acted as financial adviser to Hillenbrand, while Jefferies and UBS Investment Bank advised Lone Star.
