Hillenbrand Closes K-Tron International Purchase

Casket maker Hillenbrand Inc. said Thursday it has completed the acquisition of manufacturer K-Tron International Inc. for about $435 million.

K-Tron will become a unit of the Batesville, Ind., company. K-Tron shareholders received about $150 per share in cash for their common stock in the deal, which was announced in January.

Hillenbrand said the expected purchase price will total about $379 million, when adjusted for K-Tron debt and cash on hand as of Thursday.

K-Tron, which is based in Pitman, N.J., makes industrial feeders and pneumatic conveyers. Hillenbrand owns the Batesville Casket Co. and makes cremation products but is seeking to diversify its portfolio.

Hillenbrand used cash on hand and debt financing to fund the deal. The company said the acquisition will start adding to Hillenbrand’s earnings per share this year.

Edward B. Cloues II, K-Tron’s former chairman and CEO, will join Hillenbrand’s board effective Friday.

Hillenbrand shares rose 35 cents to $22.34 in Thursday afternoon trading.

Source: BusinessWeek.com