Hill-Rom, Inc. Announces Definitive Agreement to Acquire Volker
BATESVILLE, Ind., Dec. 16, 2011 /PRNewswire/ -- Hill-Rom Holdings, Inc. (NYSE: HRC), a global leader in patient support systems, today announced that it has signed a definitive agreement to purchase Germany-based Volker group for approximately $85 million in cash. The closing of the transaction is subject to customary review by regulatory authorities. Volker is a leading manufacturer of long-term care and acute care bed frames, surfaces and furniture in Europe and around the world. Volker is a private company with annual revenues of approximately $100 million in 2010.
The transaction is expected to strengthen Hill-Rom's channels and product offerings in Europe, and furthers Hill-Rom's objective of completing strategically relevant and value-enhancing acquisitions. The complementary Volker products would also further develop Hill-Rom's global portfolio, accelerate international expansion, and leverage existing sales channels and customer relationships. Hill-Rom anticipates the transaction to be $0.02-0.03 accretive to earnings per share in fiscal year 2012, excluding purchase accounting and integration costs.
"During its nearly 100-year history, Volker has established an impressive reputation for quality and innovative design," said John J. Greisch, President and CEO of Hill-Rom. "Our companies share similar missions and approaches to enhancing outcomes for patients and caregivers. We look forward to expanding the presence of Volker's exceptional products around the world."
"This transaction is a strategic fit for both of our companies," said Heinrich Volker, President and CEO of Volker. "Hill-Rom is a global leader with the reach and capabilities to further enable our mutual vision of transforming healthcare with pioneering products that promote dignified care for patients and efficiency for caregivers."
The transaction is expected to close within the first calendar quarter of 2012.
ABOUT HILL-ROM HOLDINGS, INC.
Hill-Rom is a leading worldwide manufacturer and provider of medical technologies and related services for the health care industry, including patient support systems, safe mobility and handling solutions, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals, and information technology solutions. Hill-Rom's comprehensive product and service offerings are used by health care providers across the health care continuum and around the world in hospitals, extended care facilities and home care settings to enhance the safety and quality of patient care.
Hill-Rom...enhancing outcomes for patients and their caregivers.
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release 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. The Company has tried, wherever possible, to identify these forward-looking statements using words such as "intend," "anticipate," "believe," "plan," "encourage," "expect," "may," "goal," "become," "pursue," "estimate," "strategy," "will," "projection," "forecast," "continue," "accelerate," "promise," "increase," "higher," "lower," "reduce," "improve," "expand," "progress," "potential" or the negative of those terms or other variations of them or by comparable terminology. The absence of such terms, however, does not mean that the statement is not forward-looking. 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. Factors that could cause actual results to differ from forward-looking statements include but are not limited to: the Company's dependence on its relationships with several large group purchasing organizations, whether the Company's new products are successful in the marketplace, impacts of healthcare reform, compliance with federal healthcare programs, collections of accounts receivable, compliance with FDA regulations, antitrust and other litigation, potential exposure to product liability or other claims, failure of the Company's announced or future strategic initiatives and restructuring and realignment activities to achieve expected growth, efficiencies or cost reductions, adverse consequences resulting from the spin-off of the funeral services business, failure of the Company to execute its acquisition and business alliance strategy through the consummation and successful integration of acquisitions or entry into joint ventures or other business alliances, increased costs or unavailability of raw materials, adverse changes in global economic conditions or disruptions of credit markets, labor disruptions, the ability to retain executive officers and other key personnel, and certain tax-related matters. For a more in depth discussion of these and other 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.