Hill-Rom: A Good Company But With A Poor Risk/Reward Profile
Jun. 17, 2015, 8:45 AM
- Hill-Rom Holdings (NYSE:HRC) acquires privately-held Welch Allyn for $2.05B in cash and stock, specifically $1.625B in cash and ~8.1M newly issued shares of HRC common. The transaction is expected to close before the end of September.
- Welch Allyn markets a diversified portfolio of point-of-care products including blood pressure monitors, vital signs devices and clinical surveillance systems.
- The combined company will have revenues of $2.6B and generate over $500M in non-GAAP EBITDA. The transaction will be immediately accretive to HRC's non-GAAP gross and EBITDA margins and non-GAAP EPS. In 2016, the deal will add more than 10% to non-GAAP EPS and more thereafter.
- Financial guidance provided on May 5 affirmed.
Jun. 16, 2014, 12:36 PM
- Hill-Rom Holdings (HRC +2.1%) acquires Trumpf Medical, the medical division of privately-held Trumpf Group for $250M in cash. Trumpf Medical provides a portfolio of operating room (OR) infrastructure products such as surgical tables & lighting and supply units. The acquisition expands HRC's presence in Asia/Pacific, the Middle East, Eastern Europe and Latin America.
- The incorporation of Trumpf Medical is expected to close in late fiscal Q4 and will add $0.12 - 0.15 to adjusted EPS. The business generated ~$250M in sales over the past 12 months.
Aug. 15, 2012, 3:23 PMHill-Rom (HRC +5.8%) trade up today after Kinetic Concepts sold its competing Therapeutic Support Systems unit to Getinge AB for around $275M. The valuation of the acquisition, along with speculation that HRC could become a takeover target appears to be what's driving the move. | Aug. 15, 2012, 3:23 PM
Hill-Rom Holdings, Inc. manufactures hospital equipment, including hospital beds and stretchers. It also offers medical technologies and related services for the health care industry, including patient support systems, safe mobility and handling solutions, non-invasive therapeutic products,... More
Industry: Medical Instruments & Supplies
Country: United States
Other News & PR