Hill-Rom Holdings (NYSE:HRC) said today that it agreed to put up $250 million in cash for the operating room infrastructure arm of Germany’s Trumpf Group.
Trumpf Medical, which makes OR items including surgical tables, surgical lighting and supply units, posted revenues of about $250 million during the last 12 months, according to a press release.
"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," Hill-Rom president & CEO John Greisch said in prepared remarks. "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."
The acquisition doubles Hill-Rom’s surgical portfolio and boosts its geographic footprint in high-growth areas such as Asia/Pacific, the Middle East, Eastern Europe and Latin America, which account for more than ⅓ of Trumpf Medical’s total sales, the company said. Trumpf Medical’s top line grew at a compound annual 6% clip from 2010 to 2013, according to the release.
Hill-Rom said it expects the acquisition to add roughly 12¢-15¢ per share to its adjusted earnings during fiscal 2015. The deal is expected to close during the latter part of the fiscal 4th quarter ending Sept. 30, according to the release.
HRC shares were up 1.7% to $40.16 apiece today as of about 2:10 p.m.
