Hillenbrand, Inc. announced it has completed the acquisition of Schenck Process' Food and Performance Materials (FPM) business, from Schenck Process Group, a portfolio company of Blackstone, for an enterprise value of approximately $730 million.
“The completion of the FPM acquisition further strengthens our leadership position across attractive, growing end markets of food, durable plastics and chemicals. This acquisition represents another step forward in the execution of our strategy to grow as a pure-play industrial company,” says Kim Ryan, president and CEO of Hillenbrand. “By combining the applications and systems processing expertise of FPM with our Advanced Process Solutions segment and deploying the Hillenbrand Operating Model, we are well-positioned to offer greater value to our customers and drive scale efficiencies. I am confident this transaction further positions us to deliver profitable growth and compelling long-term shareholder value.”
Headquartered in Kansas City, Mo., FPM has more than 1,300 employees globally and sells to customers in over 150 countries, with approximately 85% of revenues generated in North America. FPM specializes in the design, manufacturing and service of feeding, filtration, baking and material handling technologies and systems that are complementary to the equipment and solutions currently offered in Hillenbrand’s Advanced Process Solutions (APS) segment. Hillenbrand expects FPM to generate calendar year 2023 revenue of approximately $540 million and approximately $68 million of EBITDA.
FPM joins Hillenbrand’s APS segment, which is focused on industrial processing solutions and aftermarket parts and service for end markets and applications, including durable plastics, recycling and processed food.