Schenck Process (Germany) - Press Release: Schenck Process Group announces an agreement to sell its Food and Performance Materials business to Hillenbrand, Inc.
- Schenck Process Group announces an agreement to sell its Food and Performance Materials business to Hillenbrand, Inc. (NYSE: HI), a global company that provides highly-engineered, mission-critical processing equipment and solutions
- Closing is expected in the third calendar quarter of 2023, subject to regulatory approvals and other customary closing conditions
The Schenck Process Group, a leading provider of sustainable, integrated measuring and process technology solutions, announced today that is has entered into a definitive agreement to sell its Food and Performance Material (FPM) business to Hillenbrand, Inc. (NYSE: HI), a global industrial leader in highly-engineered, mission-critical processing equipment and solutions. Following closing of the transaction, the FPM business will be integrated into Hillenbrand’s Advanced Processing Solutions business segment. The transaction is expected to close in the third calendar quarter of 2023, subject to regulatory approvals and other customary closing conditions.
Headquartered in Kansas City, Missouri, the FPM business has operations in the USA, the UK, Thailand, and Brazil, with FY2022 revenues of over $500m, sales to customers in over 150 countries and with around 1,300 employees. It specializes in the design, manufacturing, and service of solutions incorporating technologies such as material handling, feeding, depositing, baking, milling, calcining, and filtration that are highly complementary to the equipment and solutions currently offered in Hillenbrand’s Advanced Process Solutions segment.
Keith Cochrane, CEO Schenck Process Group, commented:
“We are pleased to have found an acquiror which will position our Food and Performance Materials business to continue to grow and succeed. The Hillenbrand suite of technology and solutions, combined with their global footprint, provides an excellent home for the business.
After the sale of our Mining business to Sandvik last year, the sale of our Food and Performance Materials business to Hillenbrand marks the last step in setting up three distinct and standalone businesses. Following the completion of this transaction, Schenck Process will continue to be a leading provider of process solutions for mission critical applications with a focus on the EMEA and Asian markets providing customers with a unique combination of individual products, smart solutions, and deep application know-how across a number of end markets including infrastructure, chemicals and plastics.”
Kim Ryan, President and CEO of Hillenbrand, commented:
“By leveraging the combined applications and systems processing expertise of our Advanced Process Solutions segment and the Schenck Process Food and Performance Material business, we will be positioned to offer greater value to our customers and drive scale benefits across manufacturing, engineering, and procurement.”
Jay Brown, President of the Schenck Process Food and Performance Material business commented:
“As part of Hillenbrand’s Advanced Process Solutions segment, our existing offerings will be strengthened and will accelerate growth in key industries and markets around the world. The Schenck Process Food and Performance Material business leadership team could not be more pleased.”
Freshfields Bruckhaus Deringer acted as legal counsel and Goldman Sachs acted as financial advisor for Schenck Process Group.
About Schenck Process:
Schenck Process is a leading global supplier of sustainable products, integrated solutions and services for process-critical bulk materials applications. Headquartered in Darmstadt, Germany, the Group has more than 2,500 employees in over 20 countries on four continents and focuses on food, chemical and high-performance materials as well as infrastructure and energy market segments.
Hillenbrand (NYSE: HI) is a global industrial company with more than 9,000 employees who provide highly-engineered, mission-critical processing equipment and solutions to customers in over 100 countries around the world. Hillenbrand’s portfolio is composed of leading industrial brands that serve large, attractive end markets, including durable plastics, food, and recycling. Guided by its Purpose — Shape What Matters For Tomorrow™ — Hillenbrand pursues excellence, collaboration, and innovation to consistently shape solutions that best serve its associates, customers, communities, and other stakeholders.