Baxter To Acquire Hillrom In Approx. $10.5 Bln Deal - Quick Facts

(RTTNews) - Baxter International Inc. (BAX) has agreed to acquire Hillrom (HRC) for $156.00 per share in cash for a total equity value of approximately $10.5 billion. Baxter will also assume Hillrom's outstanding debt and cash, for a total enterprise value of $12.4 billion. The deal is anticipated to close by early 2022.

Baxter expects the merger to result in approximately $250 million of annual pre-tax cost synergies by the end of year three. The acquisition is projected to be low double-digit accretive to Baxter's adjusted earnings per share in the first full year post close, increasing to more than 20% by year three.

Baxter issued long-term financial guidance as a standalone entity. The company expects sales to grow 4-5%, compounded annually from 2021 to 2024. On an adjusted basis, Baxter expects to deliver earnings growth of low double digits compounded annually over the same period.

Shares of Hillrom were up nearly 3% in pre-market trade on Thursday.