Baxter to Acquire Hillrom, Expanding Connected Care and Medical Innovation Globally
DEERFIELD, Ill.& CHICAGO--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a leading global medical products company, and Hillrom (NYSE:HRC), a global medical technology leader, today announced 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.
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 Jos? (Joe) E. Almeida, Baxter?s chairman, president and chief executive officer. ?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, 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:
1Pro forma amounts as presented in this press release represent the combined results of Baxter and Hillrom and are not intended to represent pro forma financial information under Article 11 of Securities and Exchange Commission Regulation S-X.
- 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.
1Pro forma amounts as presented in this press release represent the combined results of Baxter and Hillrom and are not intended to represent pro forma financial information under Article 11 of Securities and Exchange Commission Regulation S-X.