Indiana-based Hillenbrand Inc. has entered into an agreement to acquire Herbold Meckesheim for an enterprise value of approximately 79 million euros, or $81 million. The transaction is expected to close during the fourth quarter of 2022, subject to regulatory approval and customary closing conditions.
Based in Meckesheim, Germany, Herbold is a leader in plastic recycling systems, specializing in key process steps such as washing, separating, drying, shredding and grinding.
"I am very excited to announce the acquisition of Herbold, which reinforces our commitment to growing as a world-class industrial company, executing our strategy to deliver long-term shareholder value, and accelerating our efforts to support a more sustainable future," Hillenbrand President CEO Kim Ryan says. "Herbold expands our position in the recycling end market, which has attractive, long-term growth prospects due to macro demand drivers for durable plastics and the desire for more sustainable solutions. Herbold will have a strong strategic fit with our Coperion brand, and together, we will be able to offer complete recycling solutions to our customers. Finally, we expect to enhance Herbold's performance through the deployment of the Hillenbrand Operating Model and utilization of our global sales and service capabilities."
With annual revenue of more than 50 million euros, or $51.3 million, Herbold complements the equipment and solutions offered under Hillenbrand’s Coperion brand and will accelerate Hillenbrand's growth opportunities in the recycling end market, the company says.
At the completion of this transaction, Herbold will join the Coperion and Rotex brands as part of Hillenbrand's Advanced Process Solutions (APS) segment. The APS segment is focused on engineered industrial processing solutions and aftermarket parts and services for a variety of end markets and applications.
Hillenbrand says it expects to use cash on hand and cash available under its revolving credit facility to fund this acquisition.