Baxter to acquire Hillrom in cash with an enterprise value of approximately $ 12.4 billion

Baxter International Inc. BAX,
+1.82%
on Thursday announced that it has reached a deal to acquire another medical technology company Hill-Rom Holdings Inc. for $ 156 a share, in a deal with an enterprise value of approximately $ 12.4 billion. dollars. Chicago-based Hillrom “brings a highly complementary product portfolio and innovation pipeline that will enable Baxter to provide a broader range of medical products and services to patients and clinicians across the continuum of care and globally.” whole, thereby facilitating the delivery of health care that is patient and client-centered and focused on improving clinical outcomes, ”Baxter said in a statement. The purchase price of $ 156 a share equates to a 26% premium over Hillrom’s closing price on July 27, the last trading day before media reported speculation about a possible trade. . Baxter, based in Deerfield, Ill., Will fund the deal using a mix of cash and debt financing. Low double-digit EPS in the first full year after closing. The deal is expected to close in early 2022. Baxter has said it will reschedule an Investor Day scheduled for September 20 to update its forecast, but expects sales to increase by 4% to 5% compounded. annually from 2021 to 2024. Hillrom shares jumped 3.3% pre-market, while Baxter was up 0.9%.