Hill-Rom (NYSE:HRC) said today it closed its acquisition of Mortara Instrument, paying $330 million in cash while gaining a tax benefit of approximately $40 million, bringing the estimated price to approximately $290 million.
The Chicago-based company said the acquisition would accelerate its revenue growth and be accretive to adjusted gross and operating margins and immediately accretive to its 2017 full-year adjusted earnings. The company said it would provide updated revenue and earnings guidance during its 2nd quarter earnings release.
“We are excited to welcome the Mortara team to the Hill-Rom family. Their decades of innovation, strong culture and commitment to excellence are an outstanding addition to our Front Line Care business, and we look forward to advancing our combined diagnostic cardiology and vitals monitoring capabilities for patients and their caregivers,” CEO John Greisch said in a press release.
Milwaukee-based Mortara makes an eponymous line of cardiac monitoring devices, plus the Quinton and Burdick brands it acquired from Opko’s Cardiac Science in 2013. The company, which employs more 400 workers, posted sales of $115 million last year, Hill-Rom said.
Mortara CEO Justin Mortara is slated to stay on as leader of his namesake instrument business, reporting to Hill-Rom front-line care president Alton Shader, according to Hill-Rom, which also released preliminary numbers for its fiscal 1st quarter.
Hill-Rom said it raised $300 million in a private placement earlier this month to pay for the acquisition. In the funding round, it sold senior unsecured notes due 2025, which will be guaranteed on a senior unsecured basis by current and future Hill-Rom subsidiaries.
The company clarified that the private offering was not conditioned upon the completion of its Mortara acquisition, but that the acquisition would close after the offering, according to a press release.
Hill-Rom originally announced its acquisition of Mortara in January.