Baxter to buy Hillrom in $10.5bn deal
Medical products company Baxter International has agreed to buy Hillrom in a $10.5bn deal.
Under the terms of the deal, Baxter will pay $156 per share in cash. The US company said on Thursday that 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.
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 said.
The combination is expected to result in around $250m of annual pre-tax cost synergies by the end of year three. It is also expected to be low double-digit accretive to Baxter’s adjusted earnings per share in the first full year post close, increasing to more than 20% by year three.
Baxter chairman, president and chief executive officer Jose E. Almeida said: "Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers.
"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."