• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Opinions
    • Top 30
    • Research
    • Supply Chain
    • Device Sectors
    • Directory
    • Events
    • Resources
    • Microsites
    • More
  • Magazine
  • News
  • Opinions
  • Top 30
  • Research
  • Supply Chain
  • Device Sectors
  • Directory
  • Events
  • Resources
  • Microsites
  • Current / Back Issues
    Features
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Reprints
    Subscribe Now
    Advertise Now
    Top Features
    6 Ways ERP Systems Help Medical Device Manufacturers Manage Risk and Profitability

    Machining & Laser Processing Have Huge Parts to Play in Medtech Manufacturing

    Medtech R&D Teams Must Be Creative & Resilient to Survive

    Struggling Suppliers in Electronics Manufacturing Services (EMS)

    Deep (Brain) Thoughts with Medtronic's Neuromodulation President
    OEM News
    Supplier News
    Service / Press Releases
    Online Exclusives
    Press Releases
    People in the News
    Product & Service Releases
    Supplier News
    Medtech Makers
    Technical Features
    International News
    Videos
    Product & Service Releases
    Live From Shows
    Regulatory
    Financial/Business
    Top News
    Freudenberg Medical Adds Silicone Extrusion Capabilities in Massachusetts

    Positive Long-Term Prospects for Japanese Diabetes Care Market

    Digital X-Ray is as Effective as Lung Ventilation Perfusion in Detecting CTEPH

    CIBC Innovation Banking Provides $25M in Debt Financing to Podimetrics

    Invacare's Interim CEO Permanently Secures Job
    From the Editor
    Blogs
    Guest Opinions
    Top Opinions
    6 Ways ERP Systems Help Medical Device Manufacturers Manage Risk and Profitability

    Machining & Laser Processing Have Huge Parts to Play in Medtech Manufacturing

    Medtech R&D Teams Must Be Creative & Resilient to Survive

    Struggling Suppliers in Electronics Manufacturing Services (EMS)

    Deep (Brain) Thoughts with Medtronic's Neuromodulation President
    Top 30 Medical Device Companies
    Market Data
    White Papers
    Top Research
    Deducing the Dual Reality of Elizabeth Holmes

    The Return of the AdvaMed MedTech Conference…Live!

    Material Matters: New Materials Call for New Thinking

    5 Ways to Maintain a Talent-Centric Mindset, Even During Economic Uncertainty

    The Changing Face of UK Medical Device Regulations: Most Recent Update
    3D/Additive Manufacturing
    Contract Manufacturing
    Electronics
    Machining & Laser Processing
    Materials
    Molding
    Packaging & Sterilization
    R&D & Design
    Software & IT
    Testing
    Tubing & Extrusion
    Cardiovascular
    Diagnostics
    Digital Health
    Neurological
    Patient Monitoring
    Surgical
    Orthopedics
    All Companies
    Categories
    Company Capabilities
    Add New Company
    Outsourcing Directory
    LEMO USA Inc.

    Providence Enterprise USA Inc.

    Halkey-Roberts Corporation

    JBC Technologies

    Fusion Biotec Inc.
    MPO Summit
    Industry Events
    Webinars
    Live From Show Event
    Industry Associations
    Videos
    Career Central
    eBook
    Slideshows
    Top Resources
    Onshoring Medical Device Manufacturing Can Strengthen Supply Chains

    How Artificial Intelligence Can Combat Key Issues Impacting Healthcare

    Why Advanced Sensors Are Crucial Within Medical Pumps

    How Artificial Intelligence Could Help Prevent 80% of Chronic Diseases

    4 Ways to Use Injection Molding in Medical Device Manufacturing
    Companies
    News Releases
    Product Releases
    Press Releases
    Product Spec Sheets
    Service Releases
    Case Studies
    White Papers
    Brochures
    Videos
    Outsourcing Directory
    LEMO USA Inc.

    Providence Enterprise USA Inc.

    Halkey-Roberts Corporation

    JBC Technologies

    Fusion Biotec Inc.
    • Magazine
      • Current/Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Editions
      • Subscribe Now
      • Advertise Now
    • News
    • Directory
      • All Companies
      • ALL CATEGORIES
      • Industry Associations
      • Company Capabilities
      • Add Your Company
    • Supply Chain
      • 3D/Additive Manufacturing
      • Contract Manufacturing
      • Electronics
      • Machining & Laser Processing
      • Materials
      • Molding
      • Packaging & Sterilization
      • R&D & Design
      • Software & IT
      • Testing
      • Tubing & Extrusion
    • Device Sectors
      • Cardiovascular
      • Diagnostics
      • Digital Health
      • Neurological
      • Patient Monitoring
      • Surgical
      • Orthopedics
    • Top 30 Company Report
    • Expert Insights
    • Slideshows
    • Videos
    • eBook
    • Resources
    • Podcasts
    • Infographics
    • Whitepapers
    • Research
      • White Papers
      • Case Studies
      • Product Spec Sheets
      • Market Data
    • MPO Summit
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Microsite
      • Companies
      • Product Releases
      • Product Spec Sheets
      • Services
      • White Papers / Tech Papers
      • Press Releases
      • Videos
      • Literature / Brochures
      • Case Studies
    • About Us
      • About Us
      • Contact Us
      • Advertise with Us
      • eNewsletter Archive
      • Privacy Policy
      • Terms of Use
    Breaking News

    Baxter to Acquire Hillrom in $10.5 Billion Deal

    The acquisition will broaden access to care in the hospital, home and alternate site settings.

    Baxter to Acquire Hillrom in $10.5 Billion Deal
    Related Content
    • MEDICAL & BIOTECH MANUFACTURING
    • Koch Modular Process
    • JK Medirise-Disposable Medical Device Company
    • Brosseau Consulting LLC
    • 3DT LLC
    Baxter International09.02.21
    Baxter International Inc., a global medical products company, and Hillrom, a global medical technology leader, 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.
     
    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.
     
    “Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers,” said José (Joe) E. Almeida, Baxter’s chairman, president and CEO. “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 CEO, said, “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. Baxter is the ideal partner to enhance our global reach and realize the true potential of our vision to accelerate medical innovation around the world. With our shared patient-centric cultures, we look forward to seamlessly bringing our two companies together.”
     
    Strategic Rationale
    The Baxter-Hillrom combination will expand access to Hillrom’s portfolio globally; broaden the presence of the combined companies across sites of care; accelerate and strengthen the combined organization’s digital transformation; and is expected to generate compelling financial returns for Baxter’s shareholders.
     
    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: The complementary product offering of the combined companies will support the patient in the hospital, at home, and in alternate sites of care, allowing better integration and coordination of healthcare delivery.
    • A strengthened portfolio with opportunity to accelerate digitally-enabled connected healthcare and expand penetration of combined solutions worldwide: The companies’ combined capabilities in therapeutic delivery, monitoring, blood purification, diagnostics and communications for patients and caregivers will enhance opportunities for truly connected care that result in better patient outcomes, improved workflow efficiencies and data-driven insights while lowering healthcare costs overall.
    • A robust combined platform for shareholder value creation through meaningful anticipated synergies with a continued commitment to strong cash flow generation: The transaction provides a significant opportunity to build upon Baxter’s established global infrastructure to grow Hillrom’s international business, which currently represents approximately one-third of Hillrom’s total 2020 revenue. It should also meaningfully enhance Baxter’s earnings growth through the realization of substantial cost synergies and potential opportunities to accelerate revenue growth over the longer term.
    • A shared culture that values inclusivity, innovation and corporate responsibility: The combination unites two organizations that have each been recognized for achievements in workplace diversity and corporate responsibility, and for fostering an environment that supports and encourages high performance, respect for individuals, and professional growth.
    Transaction Highlights
    Upon completion of the transaction, Baxter will pay $156.00 in cash for each outstanding share of Hillrom common stock for a purchase price of $10.5 billion. Baxter will also assume Hillrom’s outstanding debt and cash, for a total enterprise value of $12.4 billion. The purchase price represents a 26 percent premium to Hillrom’s closing stock price on July 27, the last trading day prior to media reports speculating about a potential transaction.
     
    Baxter expects the combination to result in approximately $250 million of annual pre-tax cost synergies by the end of year three. This estimate excludes any benefit from potential new revenue growth opportunities resulting from the combination of the two organizations.
     
    The transaction is expected to be low double-digit accretive to Baxter’s adjusted earnings per share (EPS) in the first full year post close, increasing to more than 20 percent by year three. The transaction is also expected to expand Baxter’s overall adjusted EBITDA margins over the medium-term and deliver strong cash flow generation with a high single-digit return on invested capital (ROIC) expected by year five.
     
    Baxter will finance the transaction through a combination of cash and fully committed debt financing. At closing, Baxter estimates that it will have net leverage of approximately 4.2x net debt to pro forma1 adjusted EBITDA of the combined companies (as estimated by Baxter management). Baxter is committed to an investment grade credit rating and deleveraging to 2.75x net leverage within two years of closing.
     
    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.
     
    Perella Weinberg Partners LP is acting as lead financial advisor to Baxter. J.P. Morgan and Citi are also serving as financial advisors to Baxter and have committed to provide fully committed financing. Sullivan & Cromwell LLP is serving as legal advisor to Baxter. Goldman, Sachs & Co. LLC is serving as lead financial advisor and BofA Securities is serving as financial advisor to Hillrom. Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Hillrom.
     
    Suggested For You
    MEDICAL & BIOTECH MANUFACTURING MEDICAL & BIOTECH MANUFACTURING
    Koch Modular Process Koch Modular Process
    JK Medirise-Disposable Medical Device Company JK Medirise-Disposable Medical Device Company
    Brosseau Consulting LLC Brosseau Consulting LLC
    3DT LLC 3DT LLC
    sfm medical devices GmbH sfm medical devices GmbH
    Hobson & Motzer Inc. Hobson & Motzer Inc.
    BMP Medical - Delivering Custom Plastics Manufactured Solutions BMP Medical - Delivering Custom Plastics Manufactured Solutions
    High Tech Turning Co. Inc. High Tech Turning Co. Inc.
    Breakthrough Device Designation Granted for New Neuromodulation Platform Breakthrough Device Designation Granted for New Neuromodulation Platform
    Hyperfine Names Paykel, Teisseyre to Executive Leadership Roles Hyperfine Names Paykel, Teisseyre to Executive Leadership Roles
    Accu-Tube Appoints Matthew Haddle as CEO Accu-Tube Appoints Matthew Haddle as CEO
    First CellFX Procedure Performed in Canada First CellFX Procedure Performed in Canada
    Turner Imaging Systems Announces International Expansion Turner Imaging Systems Announces International Expansion
    Heraeus Acquires Mo-Sci Corporation, ETS Technology Holdings Heraeus Acquires Mo-Sci Corporation, ETS Technology Holdings

    Related Literature / Brochures

    • MEDICAL & BIOTECH MANUFACTURING

      ISO 13485:2016 • FDA Registered

    • Koch Modular Process

      ...
      Victoria 11.17.22

    • JK Medirise-Disposable Medical Device Company

      ...
      Ketan Munjani, Marketing Manager 11.17.22


    • Brosseau Consulting LLC

      ...
      Bryan Brosseau, President & Principal Consultant 11.17.22

    • 3DT LLC

      ...
      Gaye Kiel, Marketing Manager 11.17.22

    Loading, Please Wait..

    Trending
    • CGM Devices Could Become Main Glucose Monitoring Solution In U.S.
    • Study: Smartphone Therapeutic Helps Improve Fibromyalgia In Patients
    • MO SCI Acquires Assets Of 3M’s Advanced Materials Business
    • Positive Long-Term Prospects For Japanese Diabetes Care Market
    • The Future Of Biomedical Engineering Advancements
    Breaking News
    • Freudenberg Medical Adds Silicone Extrusion Capabilities in Massachusetts
    • Positive Long-Term Prospects for Japanese Diabetes Care Market
    • Digital X-Ray is as Effective as Lung Ventilation Perfusion in Detecting CTEPH
    • CIBC Innovation Banking Provides $25M in Debt Financing to Podimetrics
    • Invacare's Interim CEO Permanently Secures Job
    View Breaking News >
    CURRENT ISSUE

    January/February 2023

    • Struggling Suppliers in Electronics Manufacturing Services (EMS)
    • Machining & Laser Processing Have Huge Parts to Play
    • Medtech R&D Teams Must Be Creative & Resilient to Survive
    • Medtronic Neuromodulation President, Nnamdi Njoku, Interview
    • 6 Ways ERP Systems Help Medical Device Manufacturers Manage Risk and Profitability
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    NPA Announces Annual Capitol Hill Advocacy ‘Fly-In’ Day
    GOED Elects New Board Officers for 2023
    Aspire Hires Darrec Jones as VP of Business Development
    Coatings World

    Latest Breaking News From Coatings World

    Caren Hoffmann Appointed Vice President for BASF Mining Solutions
    Microban International Announces Four Senior Hires
    PPG Completes COLORFUL COMMUNITIES Project in Denmark
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Freudenberg Medical Adds Silicone Extrusion Capabilities in Massachusetts
    Positive Long-Term Prospects for Japanese Diabetes Care Market
    Digital X-Ray is as Effective as Lung Ventilation Perfusion in Detecting CTEPH
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Bristol Myers Squibb 4Q Results
    Actinium, NCI Partner to Develop Actimab-A in AML
    Astellas Announces New President and CEO and Management Structure
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Old Spice Introduces New Mascot and Launches ‘Smelf-Confidence’ Campaign
    KVD Beauty Launches Good Apple Serum Foundation
    Interpack 2023 to Focus on Sustainability
    Happi

    Latest Breaking News From Happi

    EvaClean Promotes Nicole Slacik to Executive Vice President, Healthcare
    Personal Care Brand Odele Expands into Ulta Beauty
    Clorox’s Eric Reynolds Elected Chair of American Cleaning Institute’s Board of Directors
    Ink World

    Latest Breaking News From Ink World

    Mexar Limited Awarded OEKO-TEX ECO PASSPORT Certification
    Graphic Packaging Named to Fortune's List of World's Most Admired Companies
    CDP Awards Amcor an A- for Ongoing Work on Climate Change Disclosure
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Fujifilm expands RxD inkjet pigment dispersions color range
    Anderson & Vreeland acquires flexo consumable assets from Grimco
    Hamillroad Software's Bellissima DMS honored in Brazil
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Avgol to Showcase Algaeing Colorants and Fibers at Filtech
    Uster to Host Webinar on Zero-Level Contamination Control
    Typar Expands Drainable Wrap Line
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Steady Growth Forecast for Global Orthobiologics Market
    ODT's Most-Read Stories This Week—Feb. 4
    Toetal Solutions Secures $1.8 Million in New Financing
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    onsemi Exceeds 4Q 2022 Expectations
    Emerson Launches Ovation Green Software Portfolio
    Graphene Flagship Researchers Examine Applications for Space

    Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login