Lone Star Funds is nearing a deal to acquire Hillenbrand Inc., a U.S. plastics components and equipment manufacturer, in a transaction expected to value the company at around $1.9bn, according to people familiar with the matter cited by Bloomberg.

A formal announcement could come as early as this week, though negotiations are still ongoing. Hillenbrand’s shares closed at $26.49 on Tuesday in New York, giving the company a market capitalisation of roughly $1.87bn.

Hillenbrand, headquartered in Batesville, Indiana, supplies parts and systems used in automotive, packaging, construction, and electronics manufacturing. Its major customers include Dow Inc. and General Mills.

Over the past two years, Hillenbrand has refocused its portfolio to become a pure-play industrials company. In 2023, it divested its Batesville casket division and completed a $730m acquisition of Schenck Process Food and Performance Materials from Blackstone to expand its processing and performance materials business.

Founded in the 1990s, Dallas-based Lone Star manages around $95bn in assets across private equity, credit, and real estate. The deal would mark its latest move in the U.S. industrials sector, as private equity firms continue to pursue niche manufacturing assets positioned for global supply chain growth.

Neither Lone Star nor Hillenbrand has commented on the ongoing talks.

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