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.

Please enable JavaScript to view this content.

Editor's note: IBJ is now using a new comment system. Your Disqus account will no longer work on the IBJ site. Instead, you can leave a comment on stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Past comments are not currently showing up on stories, but they will be added in the coming weeks. Please note our updated comment policy that will govern how comments are moderated.