Hill-Rom Holdings, Inc. (“Hill-Rom”) (NYSE: HRC), has accomplished its acquisition of Mortara Instrument, Inc. (Mortara), for $330 million in cash, mainly financed through a private offering of $300 million of senior unsecured notes. Hill-Rom anticipates the structure of the acquisition will allow the company to qualify for a noteworthytax benefit, which at a net present value of about $40 million reduces the effective purchase price to about $290 million.
“We are excited to welcome the Mortara team to the Hill-Rom family,” said John J. Greisch, president and CEO of Hill-Rom. “Their decades of innovation, strong culture and commitment to excellence are an outstanding addition to our Front Line Care business, and we look forward to advancing our combined diagnostic cardiology and vitals monitoring capabilities for patients and their caregivers.”
The acquisition accelerates Hill-Rom’s revenue growth, is accretive to adjusted gross and operating margins, and is right away accretive to Hill-Rom’s 2017 full-year adjusted earnings. Hill-Rom will provide updated revenue and earnings guidance during its fiscal second quarter earnings declarement.
Mortara’s innovative portfolio of diagnostic cardiology devices is designed to serve the full continuum of clinical care, from acute care to primary care and clinical research organizations. Mortara’s comprehensive range of products, operating under the Mortara, Quinton® and Burdick® brands, include resting electrocardiography, cardiac stress exercise, Holter monitoring, ambulatory blood pressure monitoring, and cardiac and pulmonary rehabilitation and multi-parameter patient monitoring. These technologies are differentiated by industry-leading diagnostic algorithms, EMR connectivity and improved security features. Based in Milwaukee with offices in Australia, Italy, Germany, the Netherlands and the United Kingdom, Mortara has more than 400 employees globally and generated about $115 million in revenue in 2016.
As formerly declared, Mortara Instrument CEO Dr. Justin L. Mortara has joined Hill-Rom and will continue to lead Mortara Instrument, reporting to Hill-Rom Front Line Care President Alton Shader.