Newsletter Edition 87
16.10.2025
Lone Star Funds to Acquire Industrials Group Hillenbrand in $2.3bn Take-Private Deal
Lone Star Funds has agreed to acquire Hillenbrand Inc., a US-based industrial equipment manufacturer, in a $2.3 billion all-cash transaction, marking one of the latest large-cap take-private deals in 2025’s active industrials sector, according to a report by Reuters.
Under the terms of the agreement, a Lone Star affiliate will pay $32 per share, representing a 30% premium to Hillenbrand’s last closing price. Including approximately $1.5 billion of assumed debt, the deal values the company at around $3.8 billion. The transaction is expected to close by the end of the first quarter of 2026, subject to regulatory approvals.
Headquartered in Batesville, Indiana, Hillenbrand manufactures and supplies processing equipment for industries including plastics, recycling, food, and industrial materials. In recent years, the company has transformed into a pure-play industrial systems provider, divesting non-core businesses to focus on advanced manufacturing solutions. Its customers include major global brands such as Honda, Toyota, Shell, and Nestlé.
The acquisition adds to Lone Star’s $95 billion in assets under management, spanning private equity, credit, and real estate strategies. The deal underscores the firm’s focus on acquiring mature industrial businesses with resilient cash flows and potential for operational optimisation.
Evercore acted as financial adviser to Hillenbrand, while Jefferies and UBS Investment Bank advised Lone Star.
https://pe-insights.com/ftv-closes-largest-ever-fund-on-2-3bn-with-almost-100-reup-from-lps/
Warburg Pincus to Acquire German Software Firm PSI in €700m Take-Private Deal
Warburg Pincus is set to acquire PSI Software AG (PSAGn.DE), a German provider of software solutions for power and gas transmission networks and industrial automation, in a deal valuing the company at over €700 million ($813 million), according to a report by Reuters.
The transaction values PSI at €45 per share, representing a 50% premium to its closing price before the announcement. PSI’s board has endorsed the offer and plans to recommend it to shareholders, with the company expected to delist from the Frankfurt Stock Exchange following completion.
Warburg Pincus has already secured agreements representing about 28.5% of PSI’s shares from existing investors, with one major shareholder set to partially reinvest alongside the firm. PSI’s largest shareholder, Norman Rentrop, holds roughly 23%, while German utility E.ON, which owns about 18%, will remain a strategic partner post-acquisition.
The deal comes as PSI continues to recover from a cyberattack in 2024 that contributed to a €15.2 million pre-tax loss. Warburg Pincus said it plans to retain PSI’s management team and Berlin headquarters, ensuring operational continuity.
The sale process was advised by Goldman Sachs.
https://www.reuters.com/business/warburg-pincus-buy-germanys-psi-over-700-million-euros-2025-10-13/
BDT Capital-Backed Alliance Laundry Valued at $4.8bn in Strong NYSE Debut
Alliance Laundry Systems delivered a strong debut on the New York Stock Exchange on Thursday, closing its first day of trading up 11.4% and giving the company a market valuation of approximately $4.8 billion, according to a report by Reuters.
The Wisconsin-based commercial laundry equipment manufacturer priced its initial public offering at $22 per share, at the top of the marketed range of $19–$22, before opening at $24.50. The IPO saw Alliance and existing shareholders sell 34.1 million shares, marking a successful partial exit for private equity backer BDT Capital Partners, which has owned a majority stake since acquiring the company from the Ontario Teachers’ Pension Plan in 2015.
Market analysts said the strong performance reflects renewed investor appetite for private equity-backed industrial businesses, which had lagged behind tech and growth-oriented listings in recent years.
Alliance’s listing follows the recent New York flotation of Legence (LGN.O), the Blackstone-backed engineering services group, suggesting that sponsor-led exits are regaining momentum amid easing macroeconomic headwinds.
Founded over 117 years ago, Alliance Laundry manufactures commercial washing machines, dryers, and ironers, serving the hospitality, healthcare, and multi-housing sectors globally.