Inside INdiana Business

Hillenbrand divests another subsidiary

Hillenbrand Inc. is based in Batesville. (photo courtesy of Hillenbrand)

BATESVILLE, Ind. (Inside INdiana Business) — Batesville-based Hillenbrand Inc. (NYSE: HI) has completed the divestiture of its TerraSource Global business in a more than $25 million deal with Chicago-based industrial holding company Right Lane Industries. As a result of the deal, TerraSource and its subsidiaries have been consolidated into TerraSource Holdings LLC, with RLI holding majority ownership.

TerraSource is a St. Louis-based company that manufactures material handling, size reduction, screening and processing, pneumatic, and feeder equipment for a variety of industries. Under the terms of the agreement with RLI, Hillenbrand will retain an indirect 49% ownership of the newly-formed company.

“We are pleased to announce this transaction, which, in combination with two other divestitures earlier this year, represents a key strategic milestone achieved,” Joe Raver, chief executive officer of Hillenbrand, said in a news release. “Last year we announced our intention to streamline our portfolio and we have executed our plan, enabling greater focus on growing our platforms and delivering shareholder value.”

The agreement is Hillenbrand’s third divestiture this year, following deals for its Red Valve and Abel Pumps LP subsidiaries.