Hill-Rom Holdings is to purchase TRUMPF Medical, the medical unit of the privately held TRUMPF Group, for approximately USD250 million in cash.
The transaction is expected to close late in the company's fiscal fourth quarter and will be immediately accretive to adjusted earnings per share.
TRUMPF Medical, based in Germany, provides a portfolio of well-established operating room (OR) infrastructure products such as surgical tables, surgical lighting, and supply units. Hill-Rom's surgical portfolio already includes leading products for surgical safety and efficiency such as Bard-Parker scalpels, the Allen Advance Spine Table, patient positioning accessories, surgical supplies and surgical fluids management systems.
The addition of TRUMPF Medical's line of integrated OR solutions doubles Hill-Rom's surgical portfolio with operating room products and positions the company to capitalise on new customer partnerships. This acquisition also strengthens the company's geographic footprint in high-growth markets, including Asia/Pacific, the Middle East, Eastern Europe, and Latin America.
"The acquisition of TRUMPF Medical reflects our focused and disciplined strategy to pursue acquisitions that capitalise on Hill-Rom's brand equity in targeted areas, diversify our portfolio and meet our objectives for growth and value creation," says John J Greisch, president and CEO of Hill-Rom.
"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 sizeable international surgical platform that will allow us to capitalise 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."
