Baxter Acquires Hillrom in the Largest Medical Device Acquisition of the Year

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Baxter International Inc. (“Baxter”) has agreed to acquire Hillrom for $10.5 billion ($156 per share) in a deal expected to close in 2022.  After assumption of debt, the total enterprise value of the deal is approximately $12.4 billion.  The deal had been rumored for about a month before it was announced.

According to Baxter’s investor presentation, the acquisition is expected to lead to  “accelerated product and digital innovation across the care continuum and care settings.” 

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. Baxter and Hillrom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve.

José (Joe) E. Almeida, Baxter’s chairman, president and chief executive officer.

The deal is the latest in a series of moves by Baxter, including extending a multi-year strategic agreement with Amazon Web Services, and acquiring certain assets related to PerClot Polysaccharide Hemostatic System from CryoLife.

The Hillrom acquisition is the largest in an already busy year for medical device mergers and acquisitions.  Other notable acquisitions this year include Steris’ acquisition of Cantel Medical for $4.6 billion; Roche’s acquisition of GenMark Diagnostics for $1.8 billion; and Boston Scientific’s acquisitions of Lumenis’ surgical business and Preventice SolutionsAs of late July, mergers and acquisitions in the medical device field were on pace to exceed last year’s performance.

Brandon Smith
Brandon Smith is an associate in our Orange County office. His practice is focused on patent litigation and prosecution. Mr. Smith earned his Bachelor's of Science in Biomedical Engineering at California Polytechnic University, San Luis Obispo. Mr. Smith received his J.D. from the University of San Diego School of Law where he was Editor-in-Chief of Volume 52 of the San Diego Law Review. Mr. Smith was a summer associate with the firm in 2014 and joined the firm as an associate in 2015.
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