Hillenbrand To Acquire Schenck Process' FPM Business For $730M, Amplifying Its North American Presence
Portfolio Pulse from Shivani Kumaresan
Hillenbrand Inc (NYSE:HI) has agreed to acquire Schenck Process Food and Performance Materials (FPM) business, a portfolio company of Blackstone Inc (NYSE:BX), for $730 million. The deal is expected to close in Hillenbrand's fiscal Q4 2023 and expand its North American footprint.
May 24, 2023 | 3:01 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Blackstone's portfolio company, Schenck Process Food and Performance Materials, is being acquired by Hillenbrand for $730 million.
While the acquisition of Schenck Process' FPM business by Hillenbrand is a significant deal for the company, it is only a part of Blackstone's vast portfolio. The impact on Blackstone's stock price is likely to be neutral in the short term, as the deal is not expected to have a major effect on the overall performance of the company.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Hillenbrand to acquire Schenck Process' FPM business for $730M, expanding its North American footprint and processing capabilities.
The acquisition of Schenck Process' FPM business will expand Hillenbrand's North American footprint and augment its processing capabilities in key end markets. This is expected to be accretive to Adjusted EPS within the first full year and deliver ROIC in excess of the cost of capital by the fifth year, which is likely to have a positive impact on HI's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100