Hillenbrand Reaches Definitive Agreement to Sell Abel
Date 2021-01-11 | Future Strategy
• ABEL divestment further streamlines portfolio, in line with previously announced intent to exit flow control businesses
• Enables greater focus on platform businesses and growth opportunities
• Proceeds to be used to reduce leverage and reinvest in the business
BATESVILLE, Ind., January 11, 2021 /PRNewswire/ -- Hillenbrand, Inc. (NYSE: HI) announced today that it has reached a definitive agreement to sell Abel Pumps, L.P., and certain of its affiliates (ABEL) to IDEX Corporation (NYSE: IEX). The sale follows Hillenbrand’s previously announced intent to exit the ABEL business.
Hillenbrand has entered into a Share and Interest Purchase and Transfer Agreement with IDEX, pursuant to which IDEX has agreed to acquire ABEL for $103.5 million in cash, subject to customary post-closing adjustments. The transaction is expected to be completed in Hillenbrand’s second fiscal quarter, subject to customary closing conditions.
“We are pleased to announce that we have reached an agreement to sell ABEL, which is a key part of our ability to drive shareholder value and strengthen our key business platforms,” said Joe Raver, President and CEO of Hillenbrand. “The divestiture of ABEL follows the recent sale of Red Valve and, together, furthers the execution of our strategy to streamline our portfolio, increase financial flexibility, and accelerate growth.”
Consistent with its current capital allocation priorities, Hillenbrand intends to use proceeds from the sale to reduce leverage and reinvest in organic growth and profitability opportunities.
Delphi Advisors served as Hillenbrand’s financial advisor on the divestiture.
Hillenbrand (www.hillenbrand.com) is a global diversified industrial company with businesses that serve a wide variety of industries around the world. We pursue profitable growth and robust cash generation to drive increased value for our shareholders. Hillenbrand's portfolio includes industrial businesses such as Coperion, Milacron Injection Molding & Extrusion, and Mold-Masters, in addition to Batesville, a recognized leader in the death care industry in North America. Hillenbrand is publicly traded on the NYSE under "HI."
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