DEERFIELD, IL — Baxter International Inc. (NYSE: BAX), announced Monday it has completed its acquisition of Hillrom.
Baxter paid $156.00 in cash for each outstanding share of Hillrom common stock for a purchase price of $10.5 billion (based on Hillrom share counts at closing).
Including the assumption of Hillrom’s outstanding debt obligations, the enterprise value of the transaction is approximately $12.5 billion.
“The Baxter-Hillrom combination unlocks the next phase of our transformation, presenting a new wave of potential to drive greater impact for patients, clinicians, employees, shareholders, and other communities we serve worldwide,” said José (Joe) E. Almeida, Baxter’s chairman, president, and chief executive officer. “Integrating our complementary capabilities introduces additional opportunities for growth across our broad geographic footprint and also creates remarkable new possibilities for connectivity with leading-edge digital health innovation focused on enhancing care, lowering costs, and increasing workflow efficiency.”
The acquisition was announced in September.
The boards of both med-tech companies unanimously approved the deal shortly after the announcement. The acquisition also received approval from Hill-Rom shareholders along with regulatory approval.
Both companies are based in the Chicago area, but Hill-Rom has its roots and a strong manufacturing presence in Southeastern Indiana.
Hillrom was started in 1929 as a sister company of Batesville Casket as part of Hillenbrand Industries.
The two companies split in 2008, and Hillrom moved its headquarters to Chicago in 2015.
Hillrom still employs as many 1,900 people in Batesville.
A company spokeswoman told WRBI that the Batesville facility will be transitioned to the Baxter branding in 2022.
The Batesville location will be the company’s second facility in Indiana. The company has a large manufacturing facility in Bloomington.
Baxter CEO Joe Almeida visited the Batesville facility Monday morning to welcome the employees to Baxter.
In conjunction with the acquisition, Baxter announced the following executive and board appointments:
Giuseppe Accogli, formerly Baxter’s senior vice president and president, Americas, and Global Business Units, has been recently named to the newly established role of executive vice president
and chief operating officer. Mr. Accogli has been with Baxter for 14 years in roles of increasing responsibility. He previously worked for Medtronic plc, and in several sales, product, and marketing
roles for Tyco Healthcare and then Covidien.
Additionally, in connection with the acquisition close, Baxter’s board of directors has appointed Nancy M. Schlichting, retired president, and chief executive officer of Henry Ford Health System, to the Baxter board. Ms. Schlichting had served on the Hillrom board of directors. She currently serves as a director of Walgreens Boots Alliance, Encompass Health, and Pear
Therapeutics; vice-chair of the Duke University Health System board; and a trustee of Kresge Foundation and Duke University.
