Processing equipment provider Hillenbrand to acquire FPM in $730M deal
Processing equipment provider Hillenbrand will acquire Schenck Process Food and Performance Materials (FPM) business, a portfolio company of Blackstone, in a $730 million deal.
FPM, headquartered in Kansas City, Missouri, specializes in the design, manufacturing, and service of feeding, filtration, baking, and material handling technologies and systems. The company’s operations complement the equipment and solutions offered in Batesville, Indiana-based Hillenbrand’s Advanced Process Solutions segment, which FPM will become part of, according to a news release.
The transaction is expected to close during Hillenbrand’s fiscal fourth quarter of 2023, subject to regulatory approvals and other closing conditions.
FPM has more than 1,300 global employees and sells to customers in 150-plus countries, with approximately 85% of revenues generated in North America. FPM is expected to generate 2023 revenue of approximately $540 million, according to the release.
“With this acquisition, we further strengthen our leadership across the attractive, growing end markets of food, durable plastics and chemicals through strong brands that enhance the breadth of our technology and service capabilities,” Kim Ryan, president and CEO of Hillenbrand, said in the release. “By combining the applications and systems processing expertise of our Advanced Process Solutions segment with FPM, we will be positioned to offer greater value to our customers and drive scale benefits across manufacturing, engineering and procurement.”
Hillenbrand will use cash on hand and cash available under its revolving credit facility to fund this acquisition, according to the release.
The acquisition is the latest in a series of moves for Hillenbrand, which has also acquired Linxis, Peerless, Gabler, and Herbold.