Hill-Rom Holdings Inc. (NYSE:HRC) acquired the minority interest of its Encompass TSS joint venture with Encompass Group, giving the company a 100 percent share of the subsidiary.
The two companies founded Encompass TSS, or Therapeutic Support Systems, approximately a year ago to run the distribution of medical bedding products that combined the companies’ technologies.
The agreement betweent the two companies combined Hill-Rom‘s "therapy surface" products with Encompass Group‘s AccuMax and MaxiFloat surfaces. The padding and mattress products are designed to reduce pressure ulcers, or bed sores, in medical settings.
Hill-Rom said it does not expect the deal, in which the company purchased Encompass Group’s 40 percent share of Encompass TSS, to have a "material" financial impact on its FY2011 outlook. The terms of the deal were not released.
The Batesville, Ind.-based company is coming of a strong quarter in which it saw its profits almost double. The company reported profits of $50.7 million, or 79 cents per diluted share, on revenue of $396.6 million during the three months ended Sept. 30. That compares with profits of $26.4 million, or 42 cents per diluted share, on revenue of $363.3 million during the same period last year.