Hill-Rom and Encompass Group Form Joint Venture
November 09 2009 - 3:30PM
PR Newswire (US)
BATESVILLE, Ind. and MCDONOUGH, Ga., Nov. 9 /PRNewswire-FirstCall/
-- Hill-Rom (NYSE:HRC) and Encompass Group today announced the
formation of a joint venture that will focus on the sale and
distribution of a comprehensive range of surface replacement
systems that are intended to be sold separate from a bed frame and
as replacements for surfaces that are technologically obsolete or
at the end of their useful life. Hill-Rom, a global leader in
patient support systems and related technologies, brings its 80
years of expertise and innovation in the areas of therapeutic and
prevention surfaces together with Encompass, a recognized leader in
health care textiles and therapeutic and prevention surfaces, to
form a new jointly-owned company, Encompass TSS, LLC. "Encompass
and Hill-Rom today both participate in the rapidly growing surface
replacement business, each with a separate product portfolio. The
Centers for Medicare and Medicaid Services (CMS) 'no payment rules'
for hospital acquired pressure ulcers and the rising acuity levels
of patients, are driving significant category expansion," explained
Mike Grippo, vice president of Corporate Development and Strategy
at Hill-Rom. "This combination will offer our hospital customers
the most comprehensive and advanced portfolio of stand-alone
replacement surfaces in the industry, while fielding the largest
national sales force exclusively dedicated to this category." He
continued, "We believe that the combination of Hill-Rom's strengths
in therapy surface innovation and Encompass' highly regarded family
of AccuMax® and MaxiFloat® surfaces and focused direct sales
channel will enable us to accomplish that category expansion goal.
This joint venture also will free Hill-Rom's sales and clinical
consulting organization to focus on their large portfolio of
patient support systems, patient environment, and health IT
products sold as original equipment or rented." Encompass Group,
through its ETSS business unit, has traditionally been focused on
meeting the needs of customers who desire high quality and
affordable surface replacement systems. Hill-Rom's traditional
focus on patient support systems, with a significant emphasis on
advanced therapeutic surfaces, has resulted in key innovations in
pressure reduction and redistribution, micro-climate management,
antimicrobial protection, and the integration of surfaces with the
bed frame. This joint venture will combine a single-minded focus on
customer replacement surfaces with industry leading platforms
carrying the AccuMax®, MaxiFloat®, Hill-Rom® and Tempur-Pedic®
brands. Encompass TSS will become the exclusive distributor of all
but the most complex of Hill-Rom's capital surfaces in the
after-market replacement segment in North America Acute Care. It is
also expected that the joint venture will serve as the primary
distribution channel for surface replacement products that Hill-Rom
develops in the future. Encompass TSS will remain in place as a key
supplier for Hill-Rom for non-powered and powered air support
surfaces that are sold in combination with a new bed frame. The new
company will continue to operate with headquarters at its current
location in Pasadena, California, and the sales force will be
expanded. "This joint venture establishes a new company with the
product breadth, channel depth, and intense customer focus needed
to provide unparalleled performance for our customers," said Mike
Spurlock, chief executive officer of Encompass Group. "We see this
as a win for both companies and for all of our customers." The new
company was formed on November 9, 2009 and includes all the assets
of Encompass Therapeutic Support Systems (ETSS), a division of
Encompass. It will be held jointly with 60 percent owned by
Hill-Rom and 40 percent owned by Encompass. ABOUT ENCOMPASS GROUP
Encompass Group is one of the leading manufacturers and marketers
of reusable textiles, professional apparel, therapeutic support
surfaces and disposable and single use medical products. A
privately owned company, Encompass Group is composed of five
interdependent operating divisions, each focused on meeting
specific customer, product or market needs. ABOUT HILL-ROM Hill-Rom
is a leading worldwide manufacturer and provider of medical
technologies and related services for the health care industry,
including patient support systems, safe mobility and handling
solutions, non-invasive therapeutic products for a variety of acute
and chronic medical conditions, medical equipment rentals, and
information technology solutions. Hill-Rom's comprehensive product
and service offerings are used by health care providers across the
health care continuum in hospitals, extended care facilities and
home care settings to enhance the safety and quality of patient
care. Hill-Rom...enhancing outcomes for patients and their
caregivers. http://www.hill-rom.com/ Disclosure Regarding
Forward-Looking Statements Certain statements in this press release
contain forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995, regarding the
Company's future plans, objectives, beliefs, expectations,
representations and projections. The Company has tried, wherever
possible, to identify these forward-looking statements using words
such as "intend," "anticipate," "believe," "plan," "encourage,"
"expect," "may," "goal," "become," "pursue," "estimate,"
"strategy," "will," "project," "forecast," "continue,"
"accelerate," "promise," "increase," "higher," "lower," "reduce,"
"improve," "expand," "progress," "potential" or the negative of
those terms or other variations of them or by comparable
terminology. The absence of such terms, however, does not mean that
the statement is not forward-looking. It is important to note that
forward-looking statements are not guarantees of future
performance, and the Company's actual results could differ
materially from those set forth in any forward-looking statements.
Factors that could cause actual results to differ from
forward-looking statements include but are not limited to: the
Company's dependence on its relationships with several large group
purchasing organizations, whether the Company's new products are
successful in the marketplace, changes in customers' Medicare
reimbursements, collections of accounts receivable, compliance with
FDA regulations, antitrust litigation, potential exposure to
product liability or other claims, failure of the Company's
announced or future strategic initiatives and restructuring and
realignment activities to achieve expected growth, efficiencies or
cost reductions, disruptions in the Company's business or other
adverse consequences resulting from the recent spin-off of the
funeral service business, failure to realize the anticipated
benefits of the spin-off, failure of the Company to execute its
acquisition and business alliance strategy through the consummation
and successful integration of acquisitions or entry into joint
ventures or other business alliances, increased costs or
unavailability of raw materials, adverse changes in global economic
conditions or disruptions of credit markets, labor disruptions, the
ability to retain executive officers and other key personnel, and
certain tax-related matters. For a more in depth discussion of
these and other factors that could cause actual results to differ
from those contained in forward-looking statements, see the
discussions under the heading "Risk Factors" in the Company's
Annual Report on Form 10-K for the period ended September 30, 2008
and the Quarterly Report on Form 10-Q for the quarter ended June
30, 2009. The Company assumes no obligation to update or revise any
forward-looking statements. DATASOURCE: Hill-Rom CONTACT: Hill-Rom
Investor Relations: Blair A. (Andy) Rieth, Jr., Vice President,
Investor Relations, Corporate Communications & Global Brand
Development, Hill-Rom, +1-812-931-2199, , Hill-Rom Media Relations:
Lauren Green-Caldwell, Director, Corporate Communications &
Public Relations, Hill-Rom, +1-812-934-8692, ; Encompass Media
Relations: Mike Spurlock, CEO, Encompass Group, +1-770-626-2123,
Web Site: http://www.hill-rom.com/
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