Hillenbrand Inc. is moving deeper into the plastics machinery business with a 79 million euro ($82.8 million) deal for recycling equipment specialist Herbold Meckesheim GmbH.
Herbold, based in Meckesheim, Germany, makes recycling systems that include washing, separating, drying, shredding and pulverizing equipment.
Annual sales for Herbold more than 50 million euros ($52.4 million), and the deal is expected to close in the fourth quarter of this year.
"Herbold is highly complementary to the equipment and solutions offered under our Coperion brand and will accelerate Hillenbrand's growth opportunities in the recycling end market," Hillenbrand said in a statement announcing the purchase June 30.
Hillenbrand, based in Batesville, Ind., will use available cash as well as borrowing capacity in the company's existing revolving credit line to make the purchase.
"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," Hillenbrand CEO Kim Ryan said in a statement.
"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," she said.
The new owner also expects to improve Herbold's performance by bringing its operating model and global sales and service capabilities, Ryan said.
Purchasing Herbold is the latest in a series of acquisitions that have positioned Hillenbrand as a name in the plastics equipment market. Most notably, the company purchased Milacron Holdings Corp. in a $1.9 billion deal in 2019.
Hillenbrand, a publicly traded company that has its roots in casket making and still operates in that segment, said the acquisition will add to adjusted earnings per share within the first full year following completion of the deal.
Herbold will join with Hillenbrand's Coperion and Rotex brands in the firm's Advanced Process Solutions Segment, which focuses on "highly engineered industrial processing solutions and aftermarket parts and services," the company said.