With the Jan. 11 acquisition agreement between K-Tron International Inc. and Hillenbrand Inc., the local company is expanding and diversifying its business portfolio for long-term revenue and earnings growth, according to Shari Morey, Hillenbrand, Inc. and Batesville Casket Co. communications manager.

“We are delighted that K-Tron will be joining the Hillenbrand family of companies,” reported Ken Camp, HI president and chief executive officer. “We needed to have some of our business in a growing company .... We studied 400 businesses across the world .... and it was clearly the best.”

The president revealed that K-Tron has two primary business lines. The process group “manufactures, conveys, weighs and feeds bulk solids into the manufacturing process .... The size reduction group makes machines that take raw materials and reduce them in size.

“Although K-Tron’s products differ from ours, we are both manufacturing companies that share similar processes and core operational values. Like our Batesville Casket business, the K-Tron operating companies are leaders in their industries and have highly effective executive management teams. K-Tron has a strong track record of delivering superior financial performance and creating significant shareholder value,” Camp added.

Following the completion of the transaction, expected to occur at the end of March, K-Tron will operate as a wholly-owned subsidiary of HI. Kevin Bowen, K-Tron’s process group president, and Donald Melchiorre, K-Tron’s size reduction group president, will continue to manage their respective businesses and report directly to Camp. Lukas Guenthardt, K-Tron corporate development senior vice president, will also report to him.

Robert Wisniewski, K-Tron chief financial officer, will report to Cynthia Lucchese, HI’s CFO. Edward Cloues II, K-Tron’s chairman and CEO, will be appointed to the Hillenbrand board when the merger is completed. K-Tron’s headquarters will remain in Pitman, N.J., the communications manager reported.

“We are very excited about what this means for Hillenbrand shareholders .... K-Tron is a very good company,” Camp noted. “Batesville is continuing the march to grow inside the death care industry, but we are also thinking very long term .... (and) this is the beginning of our next 100 years.”

“The purchase price of $150 per share of K-Tron’s common stock represents a 32 percent premium over K-Tron’s closing price Jan. 8,” Morey noted.

“The boards of directors of both companies have unanimously approved the merger agreement. The directors and officers of K-Tron holding approximately 10 percent of K-Tron’s outstanding common stock in the aggregate have agreed to vote their shares in favor of the transaction. The transaction will have an aggregate purchase price of approximately $435 million. Adjusted for K-Tron debt and cash on hand at Oct. 3, 2009, the estimated net purchase price of the deal is approximately $390 million. The final net purchase price will be calculated based upon the K-Tron balance sheet at the date of close.”

Diane Raver can be contacted at 812-934-4343, Ext. 114; or diane.raver@ batesvilleheraldtribune.com. To comment on stories, visit batesvilleheraldtribune.com.