Baxter to acquire Hillrom for $10.5B: 6 details

Baxter International has entered into a definitive agreement to acquire medical equipment maker Hillrom for a total equity value near $10.5 billion.

Six details:

  1. The total enterprise value of the acquisition is about $12.4 billion, including assuming its debt, according to a Sept. 2 news release. Baxter is purchasing Hillrom for $156 per share. Baxter previously tried to purchase the company for $144 per share, but Hillrom refused the offer.

  2. The acquisition is expected to combine Hillrom's product portfolio and innovation pipeline with Baxter's medical product offerings. The combined companies are anticipated to better support patients in the hospital and alternative sites of care, such as in the home.

  3. Baxter is also anticipated to accelerate expansion into digital and connected care solutions to increase the capabilities of hospital-level care at home.

  4. Baxter expects to earn about $250 million in pre-tax cost synergies within three years. The estimate excludes benefits from new revenue growth opportunities from merging the companies.

  5. Hillrom, which makes equipment such as hospital beds and patient-monitoring devices, has a market capitalization of close to $9 billion. Baxter is worth around $37 billion.

  6. The transaction is expected to close by early next year.

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