Hillrom

The Progressa+ ICU bed. [Image from Baxter/Hillrom]Baxter (NYSE: BAX) + announced today that it launched its new intensive care unit bed in the U.S.

The Hillrom Progressa+ bed offers new technology and features that make it easier for nurses to care for patients while supporting recovery. Deerfield, Illinois-based Baxter acquired Hillrom and offerings like the Progressa+ ICU bed for $12.5 billion in December 2021.

“Our new and improved Progressa+ is a ‘true ICU bed,’ designed for the realities of critical care, where patient needs are high and clinical staff can be stretched thin,” said Julie Brewer, president, Baxter patient support systems, global surgical solutions and care communications businesses. “We asked ICU care teams how we could make their jobs easier, and then designed the next generation of our leading ICU bed with features that help address challenges, such as reducing the strain on nursing resources, lesse…

Baxter (NYSE:BAX) announced today that it completed its previously announced $12.5 billion acquisition of Hillrom (NYSE:HRC).

Deerfield, Illinois-based Baxter paid $156 in cash for each outstanding share of Hillrom common stock, totaling a purchase price of $10.5 billion. Adding in the assumption of Hillrom’s outstanding debt obligations, the enterprise value of the transaction comes to approximately $12.5 billion.

That purchase price reflects a 26% premium to Hillrom’s closing stock price on July 27, 2021, the last trading day prior to media reports speculating on the potential transaction, as the companies had previously confirmed when the planned acquisition was announced in September. When Hillrom announced its fourth-quarter earnings results, the company said the merger remained on track to close in 2022, but the completion has come a few weeks before the new year.

 

Read: Medtech M&A: The industry’s…

Hillrom (NYSE:HRC) shares were relatively unmoved on fourth-quarter results that finished well ahead of the consensus forecast.

The Chicago-based connected care technology developer posted profits of $53.4 million, or 80¢ per share, on sales of $797.9 million for the three months ended Sept. 30, 2021, for a 25.9% bottom-line gain on sales growth of 13.1%.

Adjusted to exclude one-time items, earnings per share were $1.67, 20¢ ahead of Wall Street, where analysts were looking for sales of $752.9 million.

The company remains on track to complete its $12.4 billion merger with Baxter, which is expected to close in 2022. Hillrom President & CEO John Groetelaars said in a news release that he and the company “remain enthusiastic” about the pending combination as the companies continue to make progress with integration planning and regulatory approvals.

“We delivered yet another strong quarter to conclude a very successful year for H…

Analysts are pleased with Hillrom’s (NYSE:HRC) position following a proxy statement last week as the company nears its merger with Baxter (NYSE:BAX).

Baxter announced last month that it agreed to buy Hillrom for approximately $12.4 billion, with Hillrom shareholders set to receive $156 per common stock share as the company will survive the merger as a direct, wholly-owned subsidiary of Baxter.

Hillrom last week posted a proxy statement confirming a special meeting of its shareholders to vote on the proposal to approve the merger agreement. The company said in the statement that the merger can’t be completed unless the shareholders approve, with the company’s board of directors unanimously approving the agreement and unanimously recommending that shareholders vote for it to go through.

Baird analyst Mike Polark said that the $156-per share price target set by the analysts is consistent with Baxter’s offer and they don’t expec…

Baxter (NYSE:BAX) announced today that it entered into a definitive agreement to acquire Hillrom Hillrom (NYSE:HRC) for approximately $12.4 billion.

Earlier this week, rumblings of a potential deal surfaced, leading to a massive rise for Hillrom’s stock. The expectation was that a deal would be reached by midweek so long as talks didn’t fall apart. Those reports saw Hillrom valued at about $150 per share, with estimates of a $10 billion deal.

According to a news release, Baxter agreed to acquire Hillrom at $156 per share in cash for a total equity value of approximately $10.5 billion, with the purchase reaching a total enterprise value of approximately $12.4 billion, including the assumption of debt. The purchase price represents a 26% premium to Hillrom’s closing stock price on July 27, 2021, the last trading day prior to media reports speculating on the potential transaction.

Baxter anticipates approximately $250 million in annual pre…

Baxter (NYSE:BAX) is reportedly in advanced talks to acquire Hillrom (NYSE:HRC) for approximately $10 billion.

The Wall Street Journal reported yesterday that the talks were ongoing at an advanced stage, having earlier reported on rumblings of a potential deal last month. Hillrom’s stock shot up when that report came out and is rising again today, ticking up 10.8% at $147.20 per share.

Reportedly, the takeover deal could value Hillrom at about $150 per share, with expectations of a deal being reached by midweek as long as talks don’t fall apart in that space of time.

When talks of a deal first surfaced, Needham & Co. senior research analyst Mike Matson said that a deal would make some sense considering the two companies have little product ove…