Hillenbrand (HI) Climbs 18% on $3.8 Billion Lone Star Merger

We recently published 10 Stocks Stealing Today’s Spotlight; 5 on All-Time Highs. Hillenbrand Inc. (NYSE:HI) is one of the best performers on Wednesday.

Hillenbrand extended its winning streak to a third consecutive day on Wednesday, surging 18.20 percent to finish at $31.31 apiece, as investors snapped up shares following announcements that it would merge with Lone Star Funds for $3.8 billion.

In a statement, Hillenbrand Inc. (NYSE:HI) said it entered into a definitive agreement with Lone Star for the sale of all of its issued and outstanding shares at a price of $32 apiece. Upon completion of the tender offer, Hillenbrand Inc. (NYSE:HI) will cease to trade on the New York Stock Exchange.

Hillenbrand (HI) Climbs 18% on $3.8 Billion Lone Star Merger

Christian Lagerek/Shutterstock.com

The acquisition price marked a 20-percent premium over Hillenbrand Inc.’s (NYSE:HI) Tuesday closing price of $26.49, prior to the official announcement, as well as a 53-percent upside from the 90-day volume-weighted average price of $23.43 on August 12, 2025.

Hillenbrand Inc. (NYSE:HI) said the entire transaction will be fully paid in cash and expected to close in the first quarter of 2026, subject to closing conditions, including shareholder and other regulatory approvals.

While we acknowledge the risk and potential of HI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.