Baxter Acquires Hillrom to Provide Broader Array of Medical Products and Services
According to a press release on Sept. 2, Deerfield, Ill.-based Baxter International Inc., a global medical products company, announced it will acquire Chicago-based Hillrom, a global medical technology company. The release states that “The companies have entered into a definitive agreement under which Baxter has agreed to acquire Hillrom for $156.00 per share in cash for a total equity value of approximately $10.5 billion and a total enterprise value of approximately $12.4 billion, including the assumption of debt.”
Futher, “Hillrom brings a highly complementary product portfolio and innovation pipeline that will enable Baxter to provide a broader array of medical products and services to patients and clinicians across the care continuum and around the world, facilitating the delivery of healthcare that is patient- and customer-centered and focused on improving clinical outcomes. The combination is also expected to accelerate the companies’ expansion into digital and connected care solutions that are increasingly enabling patients with access to hospital-level care at home or in other care settings.”
José (Joe) E. Almeida, Baxter’s chairman, president, and chief executive officer was quoted in the release saying that “Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers. Patients increasingly want to receive their care at home or nearby, while hospitals and other care providers are increasingly using digital health technologies to expand access, improve quality and lower costs. Baxter and Hillrom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve. We’re very excited to welcome the Hillrom team to Baxter, and to join together to advance our mission to save and sustain lives.”
John Groetelaars, Hillrom’s president and chief executive officer, was also quoted saying that “We are proud of the steps we have taken to transform Hillrom into a medical technology leader with an innovative portfolio of connected care solutions. Today’s milestone announcement represents a win-win for all stakeholders. Patients and caregivers will benefit from enhanced capabilities across the continuum of care, our shareholders will receive a significant and immediate premium for their investment, and our employees will benefit from being part of a larger, stronger company with accelerated growth opportunities.”
Key benefits of the acquisition include a common vision for transforming healthcare to improve efficiencies and clinical outcomes, drive actionable insights, and lead across the care continuum; a strengthened portfolio with opportunity to accelerate digitally-enabled connected healthcare and expand penetration of combined solutions worldwide; a robust combined platform for shareholder value creation through meaningful anticipated synergies with a continued commitment to strong cash flow generation; and a shared culture that values inclusivity, innovation, and corporate responsibility.
The press release concludes that “The Boards of Directors of both companies have unanimously approved the acquisition. The transaction is subject to the approval of Hillrom shareholders and the satisfaction of customary closing conditions, including regulatory approvals. The transaction is expected to close by early 2022.”
