Hillenbrand buying valve-maker for $132M

Hillenbrand Inc., one of Indiana’s largest public companies, is bulking up its industrial division by buying Pennsylvania-based valve-maker Red Valve for $132 million.

Batesville-based Hillenbrand is best known as a maker of products for the death care industry, including caskets. But the industrial division—known as the Process Equipment Group—actually is the company’s largest segment, generating nearly $1 billion of the company’s $1.6 billion in revenue in the latest fiscal year.

"This acquisition advances Hillenbrand's strategy to transform into a world-class global diversified industrial company," Hillenbrand CEO Joe Raver said in a statement.

The Process Equipment Group designs and manufactures highly engineered industrial equipment. Red  Valve, which has annual revenue of $38 million, makes specialized values and flow-control products for water and wastewater industries.

The Process Equipment Group has been aggressively expanding through acquisition. In September, the division completed the purchase of Germany-based ABEL Pumps LP for about $103 million. The company makes piston pumps for the wastewater and power-generation industries.

Investors have cheered Hillenbrand’s diversification. The company’s shares are trading at about $29.80, up from about $17.50 in the summer of 2012.

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