The multinational health care company Baxter to acquire medical technology leader Hillrom for $12.4 billion.
The chairman, president and chief executive officer of Baxter, José (Joe) 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. We’re very excited to welcome the Hillrom team to Baxter, and to join together to advance our mission to save and sustain lives.”
The Boards of Directors of both companies have unanimously approved the acquisition. The transaction is subject to the approval of Hillrom shareholders and the satisfaction of customary closing conditions, including regulatory approvals. The transaction is expected to close by early 2022.
Once the transaction is completed, Baxter will pay $156.00 in cash for each share of Hillrom stock for a purchase of $10.5 billion.
The company Baxter will also assume Hillrom’s outstanding debt and cash, for a total enterprise value of $12.4 billion. The purchase price represents a 26% premium to Hillrom’s closing stock price on July 27, 2021, the last trading day prior to media reports speculating about a potential transaction.
