Hill-Rom Holdings Inc has signed a definitive agreement to purchase TRUMPF Medical, the medical unit of the privately held TRUMPF Group, for approximately $250 million in cash, according to a company news announcement. The transaction is expected to close late in the Company’s fiscal fourth quarter and will be immediately accretive to adjusted earnings per share.
TRUMPF Medical, based in Germany, provides operating room (OR) infrastructure products such as surgical tables, surgical lighting, and supply units. Hill-Rom will add the Trumph Medical offerings to its existing portfolio of surgical safety products such as Bard-Parker scalpels, the Allen Advance Spine Table, patient positioning accessories, surgical supplies and surgical fluids management systems.
Hill-Rom, which currently has over 6,500 employees in over 100 countries, believes the move strengthens its geographic footprint in high-growth markets, including Asia/Pacific, the Middle East, Eastern Europe, and Latin America.
“The acquisition of TRUMPF Medical reflects our focused and disciplined strategy to pursue acquisitions that capitalize on Hill-Rom’s brand equity in targeted areas, diversify our portfolio and meet our objectives for growth and value creation,” said John J. Greisch, President and CEO of Hill-Rom.
“The TRUMPF Medical business expands our portfolio beyond patient handling and mobility with innovative solutions for the operating room and diversifies our revenue stream with a sizable international surgical platform that will allow us to capitalize on emerging market growth. As a result, we will be able to leverage our existing sales channels and customer relationships in order to better address their needs. We look forward to playing an even greater role in improving patient care achieving greater levels of efficiency and reducing healthcare costs.”
TRUMPF Medical’s revenues for the last twelve months were approximately $250 million, having grown at a compound annual rate of 6 percent between 2010 and 2013. More than 80% of TRUMPF Medical’s current revenue is outside North America, with approximately one-third of revenue in Asia/Pacific, the Middle East, Eastern Europe, and Latin America.
In fiscal year 2015, Hill-Rom expects TRUMPF Medical to add approximately $0.12 – $0.15 per share in adjusted earnings. The transaction, which will be funded with a combination of cash and borrowings on the Company’s existing credit facility, is subject to customary closing conditions and approval by regulatory authorities.
Hill-Rom is a leading global medical technology company with more than 6,500 employees in over 100 countries. Around the world, Hill-Rom’s people, products, and programs work towards one mission: Enhancing outcomes for patients and their caregivers.
Slept on one of your pull out chairs n the hospital. Just wondering where can I buy one or more.