Deerfield-Based Baxter Will Acquire Hillrom For $10.5B

Deerfield IL

03 September, 2021

1:56 PM

Description

DEERFIELD, IL — Deerfield's Baxter International Inc. will acquire medical technology company Hillrom for $10.5 billion, the companies announced on Thursday. Baxter will pay $156 per share in cash and will assume Hillrom's debt for a total enterprise value of approximately $12.4 billion, a news release from Business Wire said. The deal is expected to close by early next year, Crain's Chicago Business reported. Hillrom, based in Chicago, makes all sorts of medical equipment, such as hospital beds, stretchers, patient monitors, operating tables and electrocardiography, according to Crain's Chicago Business. "Baxter and Hillrom share a common vision for transforming health care to better serve all patients and providers," José (Joe) E. Almeida, Baxter's chairman, president and CEO, said in a statement. "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 CEO, called the acquisition "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," Groetelaars said in a statement. "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." Both companies' boards unanimously approved the deal, though Hillrom previously rejected a $9.6 billion offer from Baxter, Crain's Chicago Business reported. Read more from Crain's Chicago Business.