Shareholders of Hillenbrand have given their definitive approval for the company’s acquisition, setting the stage for its transition to private ownership. The $3.8 billion sale, spearheaded by Lone Star Funds, is now in its final stages, with market participants anticipating a closing date before the end of Q1 2026. Following a special meeting held on January 8, 2026, the stock has traded steadily near the agreed acquisition price of $32.00 per share.
Robust Quarterly Performance Precedes Exit
The industrial company is departing public markets on a strong operational note. Its most recent quarterly earnings surpassed analyst forecasts, with adjusted earnings per share (EPS) coming in at $0.83 against an expected $0.62. Revenue of $652.10 million also exceeded projections of $592.25 million.
A year-over-year revenue decline of 22.1% is attributed to the strategic divestiture of the Milacron injection molding and extrusion business. Excluding this impact, pro-forma core revenue within the Molding Technology Solutions segment saw a 3% adjusted increase compared to the prior year, finishing $41 million above internal targets.
Institutional Holdings Reflect Confidence
Major financial institutions have demonstrated significant interest during this period of price stability near the takeover valuation. Recent regulatory filings reveal notable adjustments to holdings:
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- Bernzott Capital Advisors expanded its position by 34.6%, now holding 389,330 shares. This investment constitutes 5.0% of its portfolio, making it the firm’s largest single holding.
- The Royal Bank of Canada increased its stake by 37.0%.
- AQR Capital Management boosted its position by a substantial 154.2%.
This activity coincides with the stock’s consolidation around the final offer price, which has effectively narrowed its trading range.
Financial Mechanics Progress Toward Closing
With shareholder consent secured, the process has moved to the financial integration phase. On January 9, 2026, LSF12 Helix Parent, LLC—an entity affiliated with Lone Star Funds—initiated change-of-control offers for Hillenbrand’s outstanding Senior Notes. This procedural step is a standard requirement in merger agreements and indicates the deal’s financing is entering its final phase.
Market analysts continue to assign a “Hold” rating to the stock, citing the limited upside between the current trading price of approximately $31.82 and the definitive $32.00 acquisition price. Attention now turns to the completion of customary closing conditions, including the resolution of shareholder litigation that alleges the proxy materials were misleading. These suits are not currently viewed by the market as posing a material risk to the transaction’s completion.
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