Hillenbrand(US:HI) Zhi Tong Cai Jing·2025-10-15 07:01Group 1 - Lone Star Funds is in advanced negotiations to acquire Hillenbrand Inc., a manufacturer of plastic components and equipment [1] - Hillenbrand's stock closed at $26.49, giving it a market capitalization of approximately $1.87 billion, with a year-to-date decline of over 10% [1] - Following the acquisition news, Hillenbrand's stock rose nearly 7% in after-hours trading [1] Group 2 - Hillenbrand produces critical plastic components and related equipment for industries such as automotive, packaging, construction, and electronics, with clients including Dow Inc. and General Mills Inc. [2] - The company has been restructuring its asset portfolio to become a "pure-play industrial" plastic products manufacturer, selling its Batesville casket business and acquiring Schenck Process Food and Performance Materials for approximately $730 million [2] - Hillenbrand has shifted focus to high-end, critical process materials and plastic products, along with associated processing equipment and aftermarket services [2] Group 3 - Hillenbrand operates two main business segments: APS, which focuses on plastic industrial mixing and extrusion, and MTS, which covers injection and extrusion equipment [3] - Lone Star Funds has a long history in private equity, managing approximately $95 billion in assets [3] - Analysts suggest that a private equity takeover could accelerate value release for Hillenbrand, leveraging its equipment and aftermarket services [3] Group 4 - Hillenbrand has completed its first phase of "sell non-core + strengthen core" by selling Batesville, acquiring FPM, and divesting control of Milacron [4] - In a privatized environment, Hillenbrand can optimize asset reconfiguration and product line selection without quarterly financial pressures, leading to more predictable EBITDA and cash recovery [4] - The combination of installed base and strong order retention supports a more robust cash flow and lower discount rates, aligning well with private equity's operational improvement and financial leverage strategies [4]