Hillenbrand Announces Sale of Red Valve Business to DeZURIK, Inc.
Hillenbrand, Inc., announced that it has completed the sale of its Red Valve business to DeZURIK, Inc. (“DeZURIK”). 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 December 31, 2020, 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.
Delphi Advisors served as Hillenbrand’s financial advisor on the divestiture.
Hillenbrand plans to update its financial guidance to reflect the sale of Red Valve on its fiscal first quarter 2021 earnings call.
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.”
Source: Hillenbrand, Inc.