Baxter to acquire Hillrom in all-cash deal with enterprise value of about $12.4 billion

Baxter International Inc. BAX, +1.82% said Thursday it has entered an statement to get chap aesculapian exertion institution Hill-Rom Holdings Inc. for $156 a share, successful a woody with an endeavor worth of astir $12.4 billion. Hillrom, based successful Chicago, "brings a highly complementary merchandise portfolio and innovation pipeline that volition alteration Baxter to supply a broader array of aesculapian products and services to patients and clinicians crossed the attraction continuum and astir the world, facilitating the transportation of healthcare that is patient- and customer-centered and focused connected improving objective outcomes," Baxter said successful a statement. The $156-a-share acquisition terms is adjacent to a 26% premium implicit Hillrom's closing banal terms connected July 27, the past trading time earlier media reports speculating connected a imaginable transaction. Deerfield, Illinois-based Baxter volition concern the woody utilizing a premix of currency and indebtedness financing, It expects the woody to effect successful astir $250 cardinal of yearly outgo synergies by the extremity of twelvemonth 3 and to boost adj. EPS by debased double-digits successful the archetypal afloat twelvemonth aft close. The woody is expected to adjacent aboriginal successful 2022. Baxter said it volition reschedule an capitalist time planned for Sept. 20 to update its guidance, but expects income to turn 4% to 5% compounded annually from 2021 to 2024. Hillrom shares jumped 3.3% premarket, portion Baxter was up 0.9%.