Benzinga | Oct 25, 2021 02:08PM EDT

Hillenbrand Completes Planned Divestiture Of TerraSource Global business

* Hillenbrand, Inc. (NYSE:HI) completed its planned disposal of TerraSource Global business under a Contribution Agreement with certain affiliated companies of industrial holding company Right Lane Industries.

* Hillenbrand contributed TerraSource and its subsidiaries to a newly formed entity, TerraSource Holdings, LLC (Holdings), with Right Lane Industries obtaining majority ownership and complete operational control of TerraSource.

* Hillenbrand received consideration in a five-year note with an initial principal amount of $25.6 million and retained an indirect 49% ownership interest in Holdings.

* Hillenbrand is entitled to a $1.5 million preferred dividend upon certain conditions in a future sale.

* In August 2020, the company revealed its intention to divest sub-scale operations, including TerraSource and flow control businesses, Red Valve, and ABEL.

* Price Action: HI shares are trading higher by 0.31% at $45.08 on the last check Monday.