Hill-Rom to buy Welch Allyn in $2.1 billion dealStaff writer ▼ | June 17, 2015
Hill-Rom Holdings said it has agreed to buy privately-held Welch Allyn in a cash and stock deal valued at about $2.1 billion.
Acquisition The health care technology companies
The combined company is expected to have $2.6 billion in revenue and generate more than $500 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA.
Hill-Rom expects to deal to immediately boost EBITDA margins and to lift 2016 adjusted per-share earnings by more than 10%.
"We believe this combination, which will be accretive to Hill-Rom's adjusted gross and EBITDA margins, will also result in an enhanced financial profile, creating the opportunity for accelerated growth," Hill-Rom Chief Executive John Greisch said in a statement. ■