Hill-Rom Closes on $2.05 Billion Welch Allyn Buy

Welch Allyn brings 2500 employees and a wide range of products to the largest maker of hospital beds in the U.S.

Chris Newmarker

Hill-Rom Holdings this week completed its $2.05 billion acquisition of Welch Allyn--a deal that allows Hill-Rom to greatly expand its product portfolio.

The deal closing, announced Wednesday, included Welch Allyn shareholders received $1.625 billion in cash and approximately 8.1 million newly-issued shares of Hill-Rom common stock.

Hill-Rom also moved its headquarters from Indiana to Chicago amid the deal. It is adding on 2500 Welch Allyn employees as part of the acquisition.

The news release announcing the closing of the merger said it would allow the combined company to offer a "wide range of innovative solutions to a patient-centric, global customer base focused on quality and efficiency."

Hill-rom is the largest maker of hospital beds in the United States, while Skaneateles Falls, NY-based Welch Allyn makes everything from otoscopes and otoscope and ophthalmoscopes to blood pressure monitors.

"Our companies share similar legacies of innovation, quality and employees who are passionate about enhancing outcomes for patients and caregivers," John J. Greisch, president and CEO of Hill-Rom, said in a news release.

When the deal was announced in June, U.S. Rep. John Katko used it as an example of why the medical device excise tax in the United States needs to be repealed, saying the tax created a situation where Welch Allyn had to sell the business to stay viable. 

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Chris Newmarker is senior editor of Qmed and MPMN. Follow him on Twitter at @newmarker.

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