Welch Allyn, Inc. — a medical-sevice maker in Skaneateles Falls that has been in operation for more than a century — will have a new owner in 2022. Baxter International (NYSE: BAX), an Illinois medical-products company has acquired Hill-Rom (NYSE: HRC) — the parent company of Welch Allyn — in a $10.5 billion deal. Hill-Rom, a […]
Welch Allyn, Inc. — a medical-sevice maker in Skaneateles Falls that has been in operation for more than a century — will have a new owner in 2022.
Baxter International (NYSE: BAX), an Illinois medical-products company has acquired Hill-Rom (NYSE: HRC) — the parent company of Welch Allyn — in a $10.5 billion deal.
Hill-Rom, a global medical-technology firm, is headquartered in Chicago, Illinois, while Baxter International is headquartered in Deerfield, Illinois, a Chicago suburb.
When asked if the acquisition will have any impact on the employee count of about 1,000 at Welch Allyn, a Baxter spokesperson tells CNYBJ that it’s too early to tell as the deal isn’t expected to close until early 2022.
“…this is the first step in the process of bringing these two established businesses together. While we have had the benefit of a sound due diligence process, the integration planning process will allow us to learn more about the Hill-Rom businesses and its employees,” Lauren Russ, VP / external communications for Baxter International says in an email.
Hillrom Holdings, Inc. in June 2015 announced plans to acquire Welch Allyn for about $2.05 billion in cash and stock. Nearly three years later, Hill-Rom formally dedicated a $12.7 million expansion project that adds about 100,000 square feet to the Welch Allyn campus.
The boards of directors of both Baxter and Hill-Rom have unanimously approved the acquisition. The deal is subject to the approval of Hill-Rom shareholders and the satisfaction of customary closing conditions, including regulatory approvals. The transaction is expected to close by early 2022, per a news release on the Baxter website.
Upon completion of the transaction, Baxter will pay $156 in cash for each outstanding share of Hill-Rom common stock for a purchase price of $10.5 billion. Baxter will also assume Hill-Rom’s outstanding debt and cash, for a total enterprise value of $12.4 billion. The purchase price represents a 26 percent premium to Hill-Rom’s closing stock price on July 27, the last trading day prior to media reports speculating about a potential transaction.
The combination is 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 Hill-Rom share a common vision for transforming healthcare to better serve all patients and providers,” José (Joe) Almeida, Baxter’s chairman, president and CEO, said. “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 Hill-Rom are uniting to meet the challenges of a rapidly evolving global health-care landscape, while also creating significant value for all the stakeholders we serve.”
“We are proud of the steps we have taken to transform Hill-Rom into a medical technology leader with an innovative portfolio of connected-care solutions,” John Groetelaars, president and CEO of Hill-Rom, said. “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.”