HRC Hill Rom Holdings

By Colin Kellaher

Baxter International Inc. on Thursday said it agreed to buy Hill-Rom Holdings Inc. for about $10.5 billion, or $156 a share, in cash.

The deal represents a roughly 7.5% premium to Wednesday's closing price of $145.06 for Hill-Rom and is 26% above the Chicago medical-equipment maker's closing price of $123.78 on July 27, before reports of Baxter's interest in a deal emerged.

Baxter, a Deerfield, Ill., medical-products maker, said the transaction carries a total value of about $12.4 billion, including the assumption of debt.

Baxter said it expects about $250 million in annual pretax cost synergies by the end of the third year, and will result in low-double-digit accretion to adjusted per-share earnings in the first full year.

Baxter said it will fund the acquisition, which it expects to complete early next year, with cash on hand and fully committed debt financing.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

September 02, 2021 07:39 ET (11:39 GMT)

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