BATESVILLE, Ind., Jan. 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.
About Hillenbrand
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."
Forward-Looking Statements
Throughout this release, we make a number of "forward-looking
statements" that are within the meaning of Section 27A of the
Securities Act of 1933, as amended, Section 21E of the Securities
Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act of 1995, and that are intended to be covered
by the safe harbor provided under these sections. As the words
imply, these are statements about future sales, earnings, cash
flow, results of operations, uses of cash, financings, share
repurchases, ability to meet deleveraging goals, and other measures
of financial performance or potential future plans or events,
strategies, objectives, beliefs, prospects, assumptions,
expectations, and projected costs or savings or transactions of the
Company that might or might not happen in the future, as contrasted
with historical information. Forward-looking statements are based
on assumptions that we believe are reasonable, but by their very
nature are subject to a wide range of risks. If our assumptions
prove inaccurate or unknown risks and uncertainties materialize,
actual results could vary materially from Hillenbrand's (the
"Company") expectations and projections.
Words that could indicate that we are making forward-looking
statements include the following:
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This is not an exhaustive list, but is intended to give you an
idea of how we try to identify forward-looking statements. The
absence of any of these words, however, does not mean that the
statement is not forward-looking.
Here is the key point: Forward-looking statements
are not guarantees of future performance, and our actual results
could differ materially from those set forth in any forward-looking
statements. Any number of factors, many of which are beyond our
control, could cause our performance to differ significantly from
what is described in the forward-looking statements. These factors
include, but are not limited to: the impact of contagious diseases
such as the COVID-19 pandemic and the societal, governmental, and
individual responses thereto, including supply chain disruption,
loss of contracts and/or customers, erosion of some customers'
credit quality, downgrades of the Company's credit quality, closure
or temporary interruption of the Company's or suppliers'
manufacturing facilities, travel, shipping and logistical
disruptions, loss of human capital or personnel, and general
economic calamities; risks that the integration of Milacron
disrupts current operations or poses potential difficulties in
employee retention or otherwise affects financial or operating
results; the ability to recognize the benefits of the acquisition
of Milacron or any other acquisition or disposition, including
potential synergies and cost savings or the failure of the Company
or any acquired company to achieve its plans and objectives
generally; impairment charges to goodwill and other identifiable
intangible assets; the risk of business disruptions associated with
information technology, cyber-attacks, or catastrophic losses
affecting infrastructure; competition in the industries in which we
operate, including on price or from nontraditional sources in the
death care industry; impacts of decreases in demand or changes in
technological advances, laws, or regulation on the revenues that we
derive from the plastics industry; our reliance upon employees,
agents, and business partners to comply with laws in many countries
and jurisdictions; the impact of the significant amount of
indebtedness of the Company and its ability to meet its
de-leveraging goals; the ability of the Company to comply with
financial or other covenants in its debt agreements; global market
and economic conditions, including those related to the financial
markets; our level of international sales and operations; cyclical
demand for industrial capital goods; continued fluctuations in
mortality rates and increased cremations; the dependence of our
business units on relationships with several large customers and
providers; the impact to the Company's effective tax rate of
changes in the mix of earnings or tax laws and certain other
tax-related matters; involvement in claims, lawsuits and
governmental proceedings related to operations; uncertainty in
the United States political
environment or global trade policy; adverse foreign currency
fluctuations; increased costs or unavailability of raw materials or
certain outsourced services; labor disruptions; increasing
competition for highly skilled and talented workers; and the effect
of certain provisions of the Company's governing documents and
Indiana law that could decrease
the trading price of the Company's common stock. Shareholders,
potential investors, and other readers are urged to consider these
risks and uncertainties in evaluating forward-looking statements
and are cautioned not to place undue reliance on the
forward-looking statements. For a more in-depth discussion of these
and other factors that could cause actual results to differ from
those contained in forward-looking statements, see the discussions
under the heading "Risk Factors" in Part I, Item 1A of
Hillenbrand's Form 10-K for the year ended September 30, 2020, filed with the Securities and
Exchange Commission ("SEC") on November 12,
2020. The forward-looking information in this release speaks
only as of the date hereof, and we assume no obligation to update
or revise any forward-looking information.
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SOURCE Hillenbrand, Inc.