— Hillenbrand Inc. officials have entered into a definitive agreement to acquire privately- held Coperion Capital GmbH, a portfolio company of Deutsche Beteiligungs AG, for an estimated purchase price of 408 million pounds ($530 million at current exchange rates), which includes the assumption of an estimated 76 million pounds of net debt and 100 million pounds of pension liability. The final price is subject to certain closing and post closing adjustments.
The transaction is expected to close in December or January, depending upon satisfaction of certain conditions, including receipt of applicable regulatory approvals, according to a press release.
Based in Stuttgart, Germany, Coperion is a global leader in the manufacture of compounding, extrusion and bulk material handling equipment used in a broad range of industries, including plastics, chemical, food processing, pharmaceutical and aluminum, as well as related replacement parts and service. At the completion of this transaction, it will become the largest company in HI's process equipment group.
Gunter Bachmann, currently Coperion's chief executive officer, will continue as president of the company, reporting to Joe Raver, HI's process equipment group president. Coperion's headquarters will remain in Germany.
“The acquisition of Coperion represents a very significant move forward for our company,” said Kenneth Camp, HI CEO. It “is a highly respected company which is led by an exceptionally talented management team with extensive global experience. This transaction will enable us to capitalize on several opportunities in combined equipment sales, accelerated global expansion and leveraging of replacement parts and service capabilities. Post closing, the process equipment group will generate revenue of more than $1 billion and will represent about two-thirds of Hillenbrand's total revenue.”