Baxter acquires global medical technology firm for estimated $12.5 billion
Baxter International has acquired global medical technology company Hillrom for an estimated $12.5 billion, the pair announced Monday.
Deerfield, Illinois-based Baxter paid $156 in cash for each outstanding share of Hillrom common stock, amounting to $10.5 billion. Combined with Hillrom’s debt obligations, the estimated price tag of the transaction totals nearly $12.5 billion.
Company officials believe the combined medtech leader will make important inroads for patient care while positively rewarding its employees and shareholders.
“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,” José (Joe) E. Almeida, Baxter’s chairman, president and chief executive officer, said in a statement.
Under the new entity, Baxter says it will expand on its installed base of more than 2 million global medical devices, building a system of connective technologies, advanced data and new digital solutions.
The move also paves the way for anticipated top- and bottom-line growth, including approximately $250 million of annual pre-tax cost synergies by the end of the new firm’s third year.
Along with the acquisition news, Baxter announced a handful of new leadership appointments. The company’s president and senior vice president Giuseppe Accogli will take over the new role of chief operating officer and executive vice president.
Additionally, Nancy M. Schlichting, former president and CEO of Henry Ford Health System, will serve on Baxter’s board of directors. Schlichting had been a Hillrom board member and is also the current vice chair of the Duke University Health System, among many other positions.
“We are invigorated by the potential to create value for patients and customers in new ways as a combined company,” Almeida added Monday. “We are very excited to welcome our Hillrom colleagues to Baxter.”
Matt joined Chicago’s TriMed team in 2018 covering all areas of health imaging after two years reporting on the hospital field. He holds a bachelor’s in English from UIC, and enjoys a good cup of coffee and an interesting documentary.