Hillenbrand has entered into a definitive agreement to acquire Red Valve Company, Inc. for $131.9 million in cash, including $3.3 million for related real estate. The transaction is expected to close within the second half of January 2016, upon receipt of regulatory approval.
Based in Carnegie, Pa., Red Valve is a global leader in highly-engineered valves designed to operate in the harshest 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 globally-recognized leader in positive displacement pumps.
During the trailing 12-month period ending on Nov. 30, 2015, Red Valve’s revenue was approximately $38.6 million, and its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was nearly $12.1 million, excluding $1.9 million in non-recurring expenses.
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.