Batesville-based Hillenbrand Inc. (NYSE: HI) says it has reached a deal to divest its Abel Pumps LP subsidiary to IDEX Corp. (NYSE: IEX) in Pittsburgh. The sale is valued at more than $103 million and remains subject to customary closing conditions.
The deal includes Abel Pumps “and certain of its affiliates,” according to Hillenbrand. Abel Pumps was originally founded in Germany and was acquired by Hillenbrand in 2015 for more than $100 million.
“We are pleased to announce that we have reached an agreement to sell ABEL, which is a key part of our ability to drive shareholder value and strengthen our key business platforms,” Joe Raver, chief executive officer of Hillenbrand, said in a news release. “The divestiture of ABEL follows the recent sale of Red Valve and, together, furthers the execution of our strategy to streamline our portfolio, increase financial flexibility, and accelerate growth.”
Hillenbrand says the sale is expected to be completed in the company’s second fiscal quarter. The company plans to use the proceeds from the same to reduce debt and “reinvest in organic growth and profitability opportunities.”