Hill-Rom to Acquire Welch Allyn for $2.05 Billion
Two of the world’s leading health care technology companies are joining forces. Hill-Rom Holdings Inc. and privately held Welch Allyn Inc. have announced that the Boards of Directors of both companies have unanimously approved a definitive agreement under which Hill-Rom will acquire Welch Allyn for approximately $2.05 billion in cash and stock.
The two companies have nearly two centuries of medical device innovation between them and will combine to develop technologies that enhance outcomes for patients and caregivers.
Under the terms of the agreement, Welch Allyn shareholders will receive $1.625 billion in cash and approximately 8.1 million newly issued shares of Hill-Rom common stock.
Upon the completion of the transaction, which the companies expect will occur before the end of September 2015, Welch Allyn shareholders, a group that consists of about 75 shareholders, will own approximately 13 percent of the combined company. No single Welch Allyn shareholder will own more than approximately one percent of Hill-Rom equity.
Headquartered in Skaneateles Falls, New York, Welch Allyn is a leading manufacturer of medical diagnostic equipment that delivers practical innovation at the point of care. For a century, Welch Allyn has enhanced the patient and caregiver experience by understanding clinical needs and developing a diversified portfolio of devices that assess, diagnose, treat and manage a wide variety of illnesses and diseases.
Welch Allyn is the only global company focused exclusively on the needs of Frontline Care with multiple call points, including primary care physicians, nurses, hospitalists, biomeds and specialists, among others.
Through the acquisition of Welch Allyn, Hill-Rom expects to play an even greater role in improving patient care globally and achieving greater levels of efficiency and reducing health care costs for its customers. Combining Hill-Rom’s position in hospitals and operating rooms worldwide with Welch Allyn’s position in point of care diagnostics and testing will expand both companies’ ability to help health care providers focus on patient care solutions that improve clinical and economic outcomes. •