Hillenbrand Stock Skyrockets on $3.8 Billion Buyout Deal

Hillenbrand stock soared 18% on Wednesday after the company announced a $3.8 billion buyout deal with Lone Star Funds. The deal, which is expected to be completed by the end of Q1 2026, will be entirely in cash and represents a 37% premium over Hillenbrand's Aug. 12 closing share price. The company will delist from the NYSE once the buyout is finalized.

Hillenbrand Inc. (NYSE:HI) saw its stock price surge by 18% on Wednesday following the announcement of a $3.8 billion acquisition deal with Lone Star Funds. The all-cash transaction, valued at $32.00 per share, represents a 37% premium over Hillenbrand's unaffected closing price on August 12, the day before deal speculation emerged, according to an InvestorsHub report. The acquisition, which has been unanimously approved by Hillenbrand’s Board of Directors, is expected to be completed by the end of the first quarter of 2026, at which point Hillenbrand will become a private company and its shares will be delisted from the NYSE, the InvestorsHub report said.

Hillenbrand, known for its engineered processing equipment through its Advanced Process Solutions and Molding Technology Solutions divisions, has reshaped its business over the past three years through targeted acquisitions and divestitures to strengthen its industrial food equipment portfolio. Donald Quintin, CEO of Lone Star, stated: “We are excited to partner with Hillenbrand, a high-quality operator in the industrial equipment sector,” InvestorsHub reported.

The deal remains subject to Hillenbrand shareholder approval and regulatory clearance. Upon completion, Hillenbrand will not provide financial guidance for fiscal year 2026, indicating a shift in strategic focus post-acquisition, according to GuruFocus. The acquisition is expected to result in Hillenbrand transitioning to a privately-held structure, with its shares no longer trading on the New York Stock Exchange, GuruFocus reported.

Hillenbrand, Inc. is a global industrial company that provides processing equipment and solutions, operating through two segments: Advanced Process Solutions and Molding Technology Solutions. The Advanced Process Solutions segment designs, engineers, manufactures, markets, and services differentiated process and material handling equipment and systems for a variety of industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals, energy, recycling, and other general industrials. Its Molding Technology Solutions segment provides highly engineered equipment, systems, and aftermarket parts and services for the plastic technology processing industry, according to MarketScreener.