Dive Brief:
- Machinery maker Hillenbrand acquired Schenck Process’ food and performance materials business for approximately $730 million on Sept. 1.
- The portfolio will now be part of Hillenbrand’s advanced process solutions segment, which supplies processing equipment, systems and aftermarket parts for the plastics, food, chemicals and recycling industries. Some of the segment’s customers include Exxon, DuPont de Nemours, General Mills and Frito Lay.
- The company expects the food and performance materials business to generate approximately $540 million in revenue and $20 million in cost synergies, according to the presentation.
Dive Insight:
Schenck’s food and performance materials business focuses on designing and manufacturing feeding, filtration, baking and material handling technologies and systems. Its addition to Hillenbrand’s advanced process solutions segment will help strengthen the company’s position in the food, durable plastics and chemicals markets, President and CEO Kim Ryan said in the release.
“I’m excited by the opportunity this acquisition will create by enabling us to provide more comprehensive value proposition to our customers, to create enhanced opportunities for our associates, to share best practices and drive scale benefits across functions like engineering, manufacturing and procurement,” Ryan told analysts in an earnings call last month.
Over the past year, the company has worked to grow its food production and processing capacity, including with the acquisition of food processing company Linxis Group in October 2022 and Peerless Food Equipment in December for $59 million.
At the same time, the company has shed other business segments in a bid to focus on growing its business in the plastics, food and recycling markets. The company sold its death care segment, casket manufacturer Batesville, for $761.5 million in December to private equity firm LongRange Capital.
“These end markets are supported by long-term macro growth demands and our improved scale allows us to leverage our global engineering and service capabilities along with our global footprint and scalable foundation to drive profitable growth,” Ryan said on the earnings call.
