Hillenbrand to acquire German recycling solutions company

BATESVILLE, IN — Batesville-based Hillenbrand, Inc. has entered into an agreement to acquire Herbold Meckesheim for nearly $83 million.

The transaction is expected to close in the 4th quarter of this year and is subject to regulatory approval and customary closing conditions.

Herbold Meckesheim is based in Germany and is considered a leader in recycling processes, specializing in key process steps such as washing, separating, drying, shredding, and pulverizing.

Hillenbrand officials say Herbold is highly complementary to the equipment and solutions offered under the Coperion brand and will accelerate Hillenbrand’s growth opportunities in the recycling end market.

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 highly engineered industrial processing solutions and aftermarket parts and services for a variety of end markets and applications.

“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,” said Kim Ryan, President, and CEO of Hillenbrand. “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,” Ryan said. “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.”

Hillenbrand expects to use cash on hand and cash available under its revolving credit facility to fund the acquisition.