Hillenbrand, Inc.
PE-OWNED
Acquired by Lone Star Funds
What PE Will Likely Do
Hillenbrand's manufacturing processes will likely see a decline in quality and efficiency as Lone Star Funds implements aggressive cost-cutting measures
Consumers can expect to see reductions in the durability and performance of Hillenbrand's products, such as shorter lifespans for their caskets, funeral urns, and other funeral service equipment
Hillenbrand may also reduce investment in research and development, leading to fewer product innovations and improvements over time
The company's customer service and aftermarket support is likely to deteriorate as Lone Star Funds looks to trim staffing and operating budgets
Expected Timeline
“0 to 6 months months”
Announcements about 'transforming' Hillenbrand's operations for 'greater efficiency'
“6 to 12 months months”
First round of cost-cutting measures announced, including workforce reductions at manufacturing facilities
“12 to 24 months months”
Noticeable decline in product quality and durability, with consumers reporting shorter lifespans for Hillenbrand's funeral service equipment
“24 to 48 months months”
Continued cost-cutting leading to further quality degradation, delays in fulfilling orders, and reduced customer service responsiveness
“48 to 60 months months”
Potential for financial distress and restructuring if Lone Star Funds is unable to turn Hillenbrand around profitably
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consumers relying on Hillenbrand's products should closely monitor any changes in quality, performance, and customer service over the next several years
Funeral home operators and other Hillenbrand customers should consider diversifying their supplier base to mitigate the risks of potential quality degradation or supply chain disruptions
Consumers should advocate for stronger regulations and oversight to protect essential industries like funeral services from the negative impacts of private equity cost-cutting
Alternatives
Look for family-owned or employee-owned businesses