Hillenbrand Divests TerraSource Global Business

Hillenbrand, Inc. (the “Company”) announced that it has completed the planned divestiture of its TerraSource Global business (“TerraSource”) pursuant to a Contribution Agreement (“Agreement”) between the Company and certain affiliated companies of industrial holding company Right Lane Industries (“RLI”).

Under the terms of the Agreement, Hillenbrand contributed TerraSource and its subsidiaries to a newly formed entity, TerraSource Holdings, LLC (“Holdings”), with RLI obtaining majority ownership and full operational control of TerraSource. In exchange for contributing the TerraSource business, the Company received consideration in the form of a five-year note with initial principal amount of $25.6 million, subject to certain adjustments, and also retained an indirect 49% ownership interest in Holdings.

Hillenbrand’s retained ownership interest entitles the Company to typical shareholder rights including its pro rata share of future distributions and dividends, as well as proceeds of any future sale transaction. In addition, Hillenbrand is entitled to a $1.5 million preferred dividend upon certain conditions in a future sale.

“We are pleased to announce this transaction, which, in combination with two other divestitures earlier this year, represents a key strategic milestone achieved,” said Joe Raver, President and CEO of Hillenbrand. “Last year we announced our intention to streamline our portfolio and we have executed our plan, enabling greater focus on growing our platforms and delivering shareholder value.”

Following a strategic portfolio review, the Company announced in August 2020 its intention to divest sub-scale operations, including TerraSource and the Company’s flow control businesses, Red Valve and ABEL. This transaction completes the planned exit of those businesses.

Delphi Advisors served as Hillenbrand’s financial advisor on the divestiture.

About Hillenbrand

Hillenbrand (www.hillenbrand.com) is a global diversified industrial company with businesses that serve a wide variety of industries around the world. We pursue profitable growth and robust cash generation to drive increased value for our shareholders. Hillenbrand’s portfolio includes industrial businesses such as Coperion, Milacron Injection Molding & Extrusion, and Mold-Masters, in addition to Batesville, a recognized leader in the death care industry in North America. Hillenbrand is publicly traded on the NYSE under “HI.”

Source:  Hillenbrand, Inc.