Hillenbrand Inc. has entered into a definitive agreement to acquire Red Valve Co. Inc. for $131.9 million in cash, including $3.3 million for related real estate. The transaction is expected to close within 30 days, upon receipt of regulatory approval.
Based in Carnegie, Pa., Red Valve manufactures valves designed to operate in municipal and industrial wastewater environments. Its products support mission critical applications in water, power and mining and other general industrial markets. At the completion of the transaction, Red Valve will join Hillenbrand's Process Equipment Group, which includes ABEL, a manufacturer of positive displacement pumps.
"We believe Red Valve will complement our recent ABEL acquisition, increasing our ability to expand into new end markets and geographies within the highly attractive flow control space," said Joe Raver, president and CEO of Hillenbrand.
During the trailing 12-month period ended Nov. 30, 2015, Red Valve's revenue was approximately $38.6 million, and its adjusted earnings before interest, taxes, depreciation and amortization was nearly $12.1 million, excluding $1.9 million in non-recurring expenses.
"We are excited about the opportunities Hillenbrand brings to our company," said Chris Raftis, president of Red Valve. "Hillenbrand has a global footprint that provides us with a significant opportunity for international growth and we look forward to working with the company to achieve our strategic vision."
Hillenbrand expects to use cash on hand and cash available under its revolving credit facility to fund this acquisition. The transaction is expected to be accretive to Hillenbrand's 2016 adjusted earnings per share, net of acquisition costs.
EC Mergers & Acquisitions, a EuroConsult company, acted as exclusive financial adviser to the shareholders of Red Valve.
Source: Hillenbrand Inc.