Lone Star Buys Hillenbrand in $3.8 Billion Deal (1)

Lone Star Funds plans to acquire US plastic parts and equipment maker Hillenbrand Inc. in an all-cash transaction valuing the target at around $3.8 billion including debt.

The private equity firm has agreed to buy Batesville, Indiana-based Hillenbrand for $32 a share, according to a statement on Wednesday. After the deal, the company will be privately owned and its shares will stop trading. The announcement confirms an earlier Bloomberg report.

Hillenbrand’s stock closed at $26.49 Tuesday in New York, giving the company a market value of $1.87 billion. The transaction is expected to close by the end of the ...