Baxter, Hillrom ‘unite’ to accelerate connected care

DEERFIELD, Ill., and CHICAGO – Baxter International announced on Sept. 2 that it has entered into a definitive agreement to buy Hillrom for $156 per share in cash for a total equity value of $10.5 billion and a total enterprise value of about $12.4 billion, including the assumption of debt. 

Baxter says the acquisition brings a highly complementary product portfolio and innovation pipeline that will enable the company to provide a broader array of medical products and services to patients and clinicians across the care continuum and around the world, facilitating the delivery of health care that is patient- and customer-centered and focused on improving clinical outcomes. It also accelerates the company’s expansion into digital and connected care solutions that are increasingly enabling patients with access to hospital-level care at home or in other home care settings. 

“Baxter and Hillrom share a common vision for transforming health care to better serve all patients and providers,” said José (Joe) E. Almeida, Baxter’s chairman, president and CEO. “Patients increasingly want to receive their care at home or nearby, while hospitals and other care providers are increasingly using digital health technologies to expand access, improve quality and lower costs. Baxter and Hillrom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve.” 

The purchase price represents a 26% premium to Hillrom’s closing stock price on July 27, 2021, the last trading day prior to media reports speculating about a potential transaction. 

The boards of directors of both companies have unanimously approved the acquisition. The transaction is subject to the approval of Hillrom shareholders and the satisfaction of customary closing conditions, including regulatory approvals. It is expected to close by early 2022.