Batesville-based Hillenbrand Inc., known for its casket business, has agreed to pay $240 million in cash to acquire a manufacturer of material-handling equipment.
Hillenbrand expects to close on its purchase of Cincinnati-based Rotex Global LLC from California-based Windjammer Capital Investors later this month. Rotex makes dry material separation machines.
The acquisition continues Hillenbrand’s strategy of diversifying its business into products outside its “death care products” mainstay. That strategy was launched in January 2010 when Hillenbrand agreed to pay $435 million for New Jersey-based K-Tron International, which makes equipment used in the plastics, food, chemical, drug, mining, paper and wood industries.
During the first six months of this year, the K-Tron division accounted for 25 percent of Hillenbrand’s revenue and 19 percent of its earnings before interest, taxes, depreciation and amortization, or EBITDA. K-Tron had revenue through the first half of the year of $109 million and EBITDA of $23 million.
Over the past 12 months, Rotex had revenue of $90 million and EBITDA of $24 million.
“ROTEX is a well-respected international company that focuses on high-quality manufacturing, has enduring customer relationships and generates strong cash flow–all of which are key attributes for any company joining Hillenbrand, Inc.,” Hillenbrand CEO Kenneth Camp said in a prepared statement.
He added that Rotex has been working to grow in Europe and Asia, which will help Hillenbrand expand all its material-handling businesses in those markets.