Hillrom Acquired by Baxter at $12.5B

The previously announced $12.5 billion acquisition of Hillrom by Baxter was finalised today. Baxter, based in Deerfield, Illinois, paid $156 per outstanding share of  common stock, for a total transaction price of $10.5 billion.

When you factor in the assumption of Hillrom outstanding debt obligations, the total transaction value is around $12.5 billion. That purchase price represents a 26 percent premium over Hillrom closing stock price on July 27, 2021, the final trading day before media stories speculating on a possible merger, as the firms verified when they disclosed acquisition plans in September.

Hillrom stated the merger remained on schedule to conclude in 2022 when it released its fourth-quarter earnings results, but it only happened a few weeks before the new year. According to Baxter, the acquisition will result in roughly $250 million in annual pre-tax cost savings by the end of year three. Furthermore, the business expects the purchase to be accretive to adjusted EPS in the low double digits in the first full year after closing, climbing to more than 20% by year three.

In a news release, Baxter Chairman, President, and CEO José (Joe) E. Almeida said, “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.” Integrating the complementing capabilities opens us new prospects for growth throughout our large geographic footprint, as well as astonishing new connections with cutting-edge digital health innovation aimed at improving care, lowering costs, and improving workflow efficiency.