5 things you need to know about Baxter’s $10.5B Hillrom purchase
Medical products giant Baxter announced on Monday that it has completed its $10.5 billion acquisition of Hillrom, a company that sells hospital beds, patient monitors and other medical equipment.
Here are five things about trading:
1. Baxter-announced in September that it plans to acquire Hillrom-paying $156 per share of Hillrom’s outstanding common stock for a purchase price of $10.5 billion. Including Hillrom’s outstanding debt, the enterprise value of the transaction is estimated at $12.5 billion.According to reports, Hillrom earlier this year Rejected a $9.6 billion takeover offer From Baxter.
2. Baxter officials stated that they expect the combined business to generate high single-digit investment returns within five years of the transaction and generate an estimated annual pre-tax cost synergy of $250 million by the end of the third year. They expect the transaction to generate low double-digit growth in Baxter’s adjusted earnings per share in the first year after the transaction closes.
3. Baxter officials stated that they plan to bring Hillrom products into new international markets and innovate on the combined company’s medical device portfolio by adding connectivity, digital health, data analysis and other technologies to create a cross-patient Connected products for families, doctor’s offices, mobile care centers, and hospitals.
José Almeida, Chairman, President and CEO of Baxter, said in a statement: “Integrating our complementary capabilities brings more growth opportunities to our extensive geographic footprint and contributes to Connectivity creates extraordinary new possibilities. Press Releases.
4. Baxter appointed Giuseppe Accogli (former Baxter’s Senior Vice President and President of the Americas and Global Business Unit) to the new role of Executive Vice President and Chief Operating Officer. Baxter’s board of directors also appointed Henry Ford Health System’s retired president and chief executive officer Nancy Schlichtin, who had served on the Hillrom board, to join the board.
5. 2021 is a big year for mergers and acquisitions of digital health companies. According to Modern Healthcare data, a total of 203 transactions were reported in the first three quarters of this year. Digital Health Business and Technology, Higher than the 132 transactions in the same period last year and the 125 transactions in the first three quarters of 2019.