• Apollo, Stellex, Lone Star in the running
• Evercore acting as sell-side advisor
• Committed financing is in place

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The Batesville, Indiana-based industrials company is working with Evercore on the sale, these sources and a third source familiar said.

On 13 August, Bloomberg reported that Hillenbrand is exploring strategic options, including a potential sale.

Apollo Global Management is among the financial sponsors around the sale process, the sources said.

Lone Star Funds is also courting the New York Stock Exchange-listed company, one of the sources said. SPX Flow, which was acquired by Lone Star in 2022, would be a logical fit with Hillenbrand, another of the sources noted.

Stellex Capital Management is in the mix of final suitors as well, one of the sources said.

The financing for the transaction is in place, one of the sources noted. Management presentations were completed a few weeks ago, two of the sources added, with one noting that final due diligence is currently underway.

Hillenbrand produces plastic parts and equipment for companies in the automotive, packaging, construction, and electronics industries, among others.

Hillenbrand has been shedding businesses over the last few years. It sold a burial products business in 2022 and back in February, the company sold a majority stake in its Milacron business for USD 287m. In July, it divested its remaining stake in manufacturing company TerraSource for USD 115m. Hillenbrand has also been active with acquisitions, bolstering its advanced process solutions business.

The Hillenbrand family is supportive of a sale, one of the sources said. The family and insiders own about 2% of the shares, according to filings.

Hillenbrand has a market capitalization of USD 1.67bn.

Hillenbrand and Apollo declined requests for comment. Lone Star Funds and Stellex did not respond to requests for comment.