Baxter to Acquire Hillrom, Targeting Expansion in Digital and Connected Care Solutions Worldwide

Two global medical technology giants have decided to join forces by way of Baxter's acquisition of Hillrom for approximately USD 10.5 billion in cash. Amounting to a total enterprise value of approximately USD 12.4 billion including assumption of debt, the transaction is expected to close in early 2022.

With the Hillrom acquisition, Baxter anticipates to forge a highly complementary product portfolio and innovation pipeline that would expand its offerings worldwide, as well as accelerate its expansion into digital and connected care solutions.

“Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers,” commented Baxter CEO, José (Joe) E. Almeida. “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.”

John Groetelaars, CEO of Hillrom, added, “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.”

Baxter expects the combination to result in approximately USD 250 million of annual pre-tax cost synergies by the end of year three, not including benefits of potential revenue growth resulting from the combination.

Launched by Dr. Ralph Falk and Dr. Don Baxter in 1931 as the first commercial manufacturer of prepared IV solutions, and having grown to current annual sales of over USD 12 billion across 100 countries, as well as a stock market value in excess of USD 41 billion, Baxter International, Inc. (Deerfield, IL, USA) is a global healthcare powerhouse in technologies relating to critical care, nutrition, dialysis, surgery, and patient care. Baxter's acquisitions in the past decade have included Baxa Corp, Sigma Infusion Pumps, Synovis Life Technologies, Sweden's Gambro AB, Cheetah Medical, as well as the Recothrom and Preveleak units of Mallinckrodt.

Hillrom's roots go back to Bill Hillenbrand's revolutionizing the hospital bed field starting with 1929, as well as the introduction of the world's first handheld direct-illuminating ophthalmoscope by Dr. Francis Welch and William Noah Allyn in 1915. Today, with annual sales of around USD 4 Billion worldwide, Hill-Rom Holdings, Inc. (Chicago, IL, USA) is an international medical technology leader in digital and connected care solutions and collaboration tools relating to smart bed systems, patient monitoring, respiratory health, and surgical procedures. As a result of an acquisition drive in recent years, the Hillrom group now incorporates a number of well-known international brands including Allen Medical, Liko, Mortara, Trumpf Medical, Voalte, Welch Allyn, Breathe Technologies, and Excel Medical.

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