Coperion joins Hillenbrand stable with K-Tron, Rotex

By Rhoda Miel
News Editor

Published: October 16, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Machinery

BATESVILLE, IND. (UPDATED Oct. 18, 10:05 a.m. ET) — Hillenbrand Inc., the parent company of auxiliary equipment maker K-Tron International Inc. and Rotex Global LLC, has now inked a deal to buy compounding extruder maker Coperion GmbH in a move to create a supplier system it believes will become a major force in a growing North American polymer industry.

Complete designs that include both K-Tron and Coperion products can win a key spot in operations being built in the U.S. to take advantage of new natural gas supplies from hydraulic fracturing and horizontal drilling, Hillenbrand CEO Kenneth Camp said.

“The beauty here is that we can leverage so much more across the two companies,” Camp told analysts during an Oct. 16 conference call discussing the acquisition plan.

At the same time, Rotex’s screening and material-separation equipment is used widely in the oil sands operations of the northern U.S. and Canada.

“The value [of the acquisition] is not just based on [financial] chop, cut and eliminate,” he said.

Hillenbrand expects to complete the deal in December or January, buying Coperion from Deutsche Beteiligungs AG of Frankfurt, Germany. Hillenbrand will pay $530 million (408 million euros), which includes an assumption of $99 million (76 million euros) in debt and $130.4 million (100 million euros) in pension liability.

P&M Corporate Finance LLC of Southfield, Mich., was a financial adviser to Hillenbrand during the transaction and Skadden, Arps, Slate, Meagher & Flom LLP of New York was the legal adviser.

Coperion will become the largest company in Batesville-based Hillenbrand’s Process Equipment Group, which also includes K-Tron and Rotex. Gunter Bachmann, currently Coperion’s CEO, will continue as president of Coperion, which will retain its headquarters in Stuttgart, Germany.

For the 12-month period ended Sept. 30, Coperion’s revenue was $675 million (520 million euros), Hillenbrand officials said.

Once the acquisition closes, the Process Equipment Group will generate $1 billion in annual sales and represent about two-thirds of Hillenbrand’s total revenue.

The other firm in the group, TerraSource Global, is a material-handling specialist. Hillenbrand also owns Batesville Casket Co.

Camp said he first met Coperion’s Bachmann during a trade show in Germany. During discussions the men discovered they had similar views of future economic prospects, he said.

“It was clear that we would meet again either as adversaries or allies,” Camp said.

By joining forces, both firms have access not only to complementary production, but also geographic opportunities. Only 20 percent of Coperion’s current sales are in North America, while Hillenbrand’s numbers are almost the opposite, said Joe Raver, president of Hillenbrand’s Process Equipment Group. Jointly the companies will have manufacturing in Europe, North America and Asia.

“With this, we are adding several more steps within the value chain to [Coperion’s system development],” Bachmann said. “This helps quite a bit because instead of buying equipment or parts from someone else, we will have it within the company.”


Comments

Coperion joins Hillenbrand stable with K-Tron, Rotex

By Rhoda Miel
News Editor

Published: October 16, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Krahn Chemie acquires Italy's Pietro Carini

April 15, 2014 11:20 am ET

Germany's Krahn Chemie GmbH has purchased a majority share in Italy-based speciality chemical company Pietro Carini SpA.    More

Image

RKW buys Hyplast, folds into RKW Agri

April 15, 2014 11:13 am ET

RKW SE, a Germany-based films and flexible packaging group, has announced it has acquired Belgium's Hyplast NV.    More

JSW looks to improve equipment servicing in Europe through contract

April 15, 2014 11:09 am ET

Tokyo-based manufacturer of extruding machinery Japan Steel Works (JSW) has signed an agreement with a Dutch company to help it improve servicing on...    More

Polypipe shares rise on opening day of IPO

April 15, 2014 11:06 am ET

Polypipe Group plc saw its share prices rise during its first day of public trading on the London Stock Exchange, rising from 245 pence ($4.10) to...    More

Image

US equipment firm buys Negri Bossi

April 14, 2014 1:58 pm ET

Italian plastics equipment major Sacmi Group's offerings are getting a U.S. identity. Sacmi has sold its plastics division to Kingsbury Corp., a machi...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events