Hill-Rom Completes Acquisition of Trumpf Medical
CHICAGO, Aug. 1, 2014 /PRNewswire/ -- Hill-Rom Holdings, Inc. (NYSE: HRC) today announced that it has completed its approximately $250 million purchase of Trumpf Medical, the medical unit of the privately held TRUMPF Group. The transaction closely aligns with the company's core growth strategies as it will more than double the size of Hill-Rom's existing surgical platform, complement and expand the Company's global footprint and leverage existing sales channels and customer relationships to better address the needs of patients and caregivers.
Hill-Rom's surgical portfolio already includes leading products for surgical safety and efficiency, such as Bard-Parker® scalpels, the Allen® Advance Spine Table, patient positioning accessories, surgical supplies and surgical fluids management systems. The addition of Trumpf Medical's line of integrated operating room (OR) solutions significantly expands Hill-Rom's surgical portfolio with market-leading OR products and positions the company to capitalize on new customer partnerships. This acquisition also strengthens the Company's presence in higher-growth markets, including Asia/Pacific, the Middle East, Eastern Europe and Latin America.
"We are excited to officially welcome our Trumpf Medical colleagues to the Hill-Rom family," said John J. Greisch, President and CEO of Hill-Rom. "Our companies share similar legacies of innovation, quality and employees who are passionate about enhancing outcomes for patients and caregivers. We look forward to investing in the strong reputation that the Trumpf Medical team has built by expanding the presence of their exceptional products around the world."
The transaction is expected to add approximately $0.12 to $0.15 adjusted earnings per share in fiscal year 2015. The transaction will be funded with a combination of cash on hand and borrowings on the Company's existing credit facility.
About Hill-Rom Holdings, Inc.
Hill-Rom is a leading global medical technology company with more than 7,000 employees in over 100 countries. We partner with health care providers by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Clinical Workflow, Surgical Safety and Efficiency and Respiratory Health. Around the world, Hill-Rom's people, products, and programs work towards one mission: Enhancing outcomes for patients and their caregivers.
Discussion of Adjusted Financial Measures
Hill-Rom Holdings, Inc. routinely provides earnings per share results and guidance on an adjusted basis because the Company's management believes that the presentation provides useful information to investors. These measures exclude strategic developments, special charges or other unusual events. Such items may be highly variable, difficult to predict and of a size that sometimes have substantial impact on the Company's reported operations for a period. Often, prospective quantification of such items is not feasible.
The Company also excludes expenses associated with the amortization of intangible assets associated with prior business acquisitions. This adjustment is made to allow investors to evaluate and understand operating trends excluding the non-cash impact of acquired intangible amortization on operating income, earnings per share and other measures that have historically included this expense.
Management uses these measures internally for planning, forecasting and evaluating the performance of the business. Investors should consider non-GAAP measures in addition to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.
Disclosure Regarding Forward Looking Statements
Certain statements herein 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. 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. For a more in depth discussion of 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 previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or revise any forward-looking statements.
SOURCE Hill-Rom Holdings, Inc.