Baxter International Inc. sweetened its offer and announced Thursday that it reached a deal to buy Indiana-rooted Hill-Rom Holdings Inc. for about $10.5 billion.
Baxter said it would buy its rival medical-gear maker for $156 per share. Hill-Rom had rejected an earlier offer of $144 per share, according to published reports. Including debt, the deal is worth about $12.4 billion.
Hill-Rom, now based in Chicago, was founded in southeastern Indiana and continues to have a significant manufacturing presence in Batesville.
“Today’s milestone announcement represents a win-win for all stakeholders,” John Groetelaars, Hill-Rom’s president and CEO, said in a written statement. “Patients and caregivers will benefit from enhanced capabilities across the continuum of care, our shareholders will receive a significant and immediate premium for their investment, and our employees will benefit from being part of a larger, stronger company with accelerated growth opportunities.”
José “Joe” E. Almeida, Baxter’s chairman, president and CEO, said in a press release that Baxter and Hill-Rom share a common vision for transforming healthcare to better serve all patients and providers.
“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,” Almeida said in a statement. “Baxter and Hill-Rom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve.”
Almeida will remain chairman, president and CEO after the deal closes.
Hill-Rom was established in 1929 as a sister company of Batesville Casket within Hillenbrand Industries. The companies split in 2008 and Hill-Rom relocated its headquarters to Chicago in 2015.
Hill-Rom, which makes hospital beds and patient-monitoring devices, continues to employ as many 1,900 people in Batesville.
Baxter is a medical technology company based in Deerfield, Ill.