Machinery News

K-Tron to be bought by casket maker
US-based auxiliary equipment producer K-Tron is to be bought by Hillenbrand, which owns casket manufacturer Batesville Casket, for US$435 million.

Stating that it is looking at diversifying its interests, Hillenbrand will pay US$150 a share for K-Tron. ""Although K-Tron's products differ from ours, we are both manufacturing companies that share similar processes and core operational values,” said Hillenbrand President and Chief Executive Kenneth Camp.

Following the completion of the transaction, expected to occur at the end of March, K-Tron will operate as a wholly owned subsidiary of Hillenbrand. Kevin Bowen, who will be President of K-Tron's Process Group, and Donald W. Melchiorre, who will be President of K-Tron's Size Reduction Group, will continue to manage their respective businesses and report directly to Camp. Edward Cloues, K-Tron’s Chairman/CEO, will be appointed to the Hillenbrand Board of Directors once the sale is completed.

K-Tron, which manufactures material conveyors, bulk handling equipment, feeders and blenders, had a revenue of US$47.321 million in the third quarter last year, a decline of 20.6% from the previous year.

Commenting on the company's performance last year, Cloues had said, “While we still do not anticipate any significant recovery before mid-2010 in many of our key markets, we are encouraged by how relatively well we have performed under very difficult circumstances and look forward to a gradually improving business environment. We also believe, as we said last quarter, that the cost reduction initiatives implemented by us earlier in the year will enable the company to continue to deliver good earnings and cash flow.”