BATESVILLE, IN — Hillenbrand, Inc. announced Monday that it has reached a definitive agreement to sell Abel Pumps, L.P., and certain of its affiliates to IDEX Corporation. 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.
Hillenbrand announced Jan. 4 that it has completed the sale of its Red Valve business to DeZURIK, Inc. The sale follows Hillenbrand's previously announced intent to exit the business.
Hillenbrand entered into a stock purchase agreement with DeZURIK, pursuant to which DeZURIK acquired Red Valve on Dec. 31 at an enterprise value of $63 million, subject to customary post-closing adjustments. The purchase price included a $58 million cash payment at closing and a $5 million note payable.
"We are excited to announce the sale of the Red Valve business, which is in line with our commitment to driving shareholder value by focusing on our key business platforms," said Joe Raver, President and CEO of Hillenbrand. "The timely divestiture of Red Valve results in increased financial flexibility and enhances overall shareholder value."
Consistent with its current capital allocation priorities, Hillenbrand intends to use proceeds from the sale primarily for deleveraging.
Hillenbrand plans to update its financial guidance to reflect the sale of Red Valve on its fiscal first quarter 2021 earnings call.
Hillenbrand is a global diversified industrial company with businesses that serve a wide variety of industries around the world. 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.