Hillenbrand Inc., which acquired auxiliary equipment company K-Tron International Inc. last year, has bought Rotex Global LLC, a maker of screening and material separation equipment, in a deal announced Aug. 5.
Hillenbrand paid $240 million in cash to buy Cincinnati-based Rotex from Windjammer Capital Investors of Newport Beach, Calif. The acquisition is expected to close in late August.
Hillenbrand, a publicly traded company based in Batesville, said Rotex had $90 million in sales for the 12 months from July 2010 through June 2011. It generated $24 million in earnings before interest, taxes, depreciation and amortization.
Between 2006 and 2010, Rotex had a compound annual growth rate of just over 10 percent, with consistently improving EBITDA margins, according to Hillenbrand.
Rotex makes machinery to separate dry materials, including gyratory and vibratory screeners and sifters for dry materials, liquid-solid separators for wet applications, automated particle-size analyzers and vibratory feeders and conveyors.
Rotex expanded its production space in Cincinnati this year by 8,000 square feet to boost production of screens and develop new screening media and manufacturing techniques. In 2010, the company expanded production at its plant in Wavre, Belgium.
Rotex will become the third line of business under Hillenbrand's Process Equipment Group. The two other lines are K-Tron, which focuses on material handling, feeding and pneumatic conveying equipment; and the size-reduction business, which concentrates on crushing equipment, conveying systems and screening equipment.
“Rotex products complement both existing Process Equipment Group business lines, while giving us additional reach into new high-growth applications and geographies,” said Kenneth Camp, Hillenbrand's president and CEO. Buying Rotex also helps the company expand into Europe and Asia, he added.
P&M Corporate Finance LLC of Southfield, Mich., advised Hillenbrand on the deal.
Hillenbrand also owns Batesville Casket Co.
Private equity firm Windjammer Capital and company management bought Rotex in 2007.