This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Hill-Rom Announces Definitive Agreement To Acquire TRUMPF Medical

CHICAGO, June 16, 2014 /PRNewswire/ -- Hill-Rom Holdings, Inc. (NYSE: HRC) today announced the signing of a definitive agreement to purchase TRUMPF Medical, the medical unit of the privately held TRUMPF Group, for approximately $250 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.

Hill-Rom Logo.

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 market leading operating room products and positions the company to capitalize 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 capitalize on Hill-Rom's brand equity in targeted areas, diversify our portfolio and meet our objectives for growth and value creation," said 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 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."

TRUMPF Medical's revenues for the last twelve months were approximately $250 million, having grown at a compound annual rate of 6 percent between 2010 and 2013.  More than 80 percent of TRUMPF Medical's current revenue is outside North America, with approximately one-third of revenue in Asia/Pacific, the Middle East, Eastern Europe, and Latin America.  In fiscal year 2015, Hill-Rom expects TRUMPF Medical to add approximately $0.12 - $0.15 per share in adjusted earnings. The transaction, which will be funded with a combination of cash and borrowings on the Company's existing credit facility, is subject to customary closing conditions and approval by regulatory authorities. 

Conference Call Webcast and Dial-in Information

The Company will host a conference call and webcast to discuss the transaction today at 8:30 am ET.

Webcast: To join the live audio only webcast, go to http://www.media-server.com/m/p/4fb6vako.

Conference Call Audio Only Dial-in information: To join the live conference call, dial 877-304-8969 domestic callers / 631-291-4543 international callers.  The following Confirmation Code is required for both: 61154098. Callers will need to provide their name, company affiliation and telephone number to the conference operator.  A recording of the webcast/call audio will be available for telephone replay through June 22, 2014, domestically at 855-859-2056 and internationally at 404-537-3406. For the replay, callers will need to use confirmation code 61154098. If you are unable to listen to the live webcast or the telephone replay, the webcast will be archived at http://ir.hill-rom.com/events.cfm.

About Hill-Rom Holdings, Inc.

Hill-Rom is a leading global medical technology company with more than 6,500 employees in over 100 countries. We partner with health care providers by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Clinical Workflow, Surgical Safety and Efficiency, and Respiratory Health. Around the world, Hill-Rom's people, products, and programs work towards one mission: Enhancing outcomes for patients and their caregivers.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,157.58 -131.05 -0.72%
S&P 500 2,100.61 -16.78 -0.79%
NASDAQ 4,963.4230 -44.6730 -0.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs