Hill-Rom, manufacturer and provider of medical technologies, has signed an agreement to acquire US-based Welch Allyn, for around US$2.05 billion in cash and stock. This acquisition is said to expand Hill-Rom’s product portfolio with point of care diagnostics and testing, allowing it provide enhanced patients care solutions for hospitals, physician offices and other care settings.
Under the terms of the agreement, shareholders of Welch Allyn will receive US$1.625 billion in cash and approximately 8.1 million newly-issued shares of Hill-Rom common stock. Post closing, which is expected before the end of September 2015, Welch Allyn shareholders will own approximately 13 per cent of the combined company. No single Welch Allyn shareholder will own more than approximately one per cent of Hill-Rom equity.
“Hill-Rom is at the forefront of improving the healthcare delivery system, and this compelling combination further positions Hill-Rom to play an increasingly important role in improving patient care,” said John Greisch, President and CEO, Hill-Rom Holdings.
“Hill-Rom has the scale, geographic reach, experience and vision necessary to foster the next stage of growth and to ensure Welch Allyn’s continued success,” said Steve Meyer, President, Welch Allyn.
”Combining with Hill-Rom will enable Welch Allyn to build on our important accomplishments over the last 100 years and play an even bigger role serving and meeting the evolving needs of patients and healthcare systems around the world,” Meyer added.