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

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC,...    More

Image

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

Munson Machinery expanding assembly, testing operations

July 22, 2014 2:02 pm ET

Munson Machinery Co. Inc. is expanding its headquarters factory by about one-third in Utica, N.Y., where the company makes mixing, blending and size-...    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of bever...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events