Hill-Rom announces signing of definitive agreement to purchase TRUMPF Medical

Hill-Rom Holdings, Inc. (NYSE: HRC) today announced the signing of a definitive agreement to purchase TRUMPF Medical, the medical unit of the privately held TRUMPF Group, for approximately $250 million in cash. The transaction is expected to close late in the Company's fiscal fourth quarter and will be immediately accretive to adjusted earnings per share.

TRUMPF Medical, based in Germany, provides a portfolio of well-established operating room (OR) infrastructure products such as surgical tables, surgical lighting, and supply units. Hill-Rom's surgical portfolio already includes leading products for surgical safety and efficiency such as Bard-Parker scalpels, the Allen Advance Spine Table, patient positioning accessories, surgical supplies and surgical fluids management systems.

The addition of TRUMPF Medical's line of integrated OR solutions doubles Hill-Rom's surgical portfolio with market leading operating room products and positions the company to capitalize on new customer partnerships. This acquisition also strengthens the Company's geographic footprint in high-growth markets, including Asia/Pacific, the Middle East, Eastern Europe, and Latin America.

"The acquisition of TRUMPF Medical reflects our focused and disciplined strategy to pursue acquisitions that capitalize on Hill-Rom's brand equity in targeted areas, diversify our portfolio and meet our objectives for growth and value creation," said John J. Greisch, President and CEO of Hill-Rom. "The TRUMPF Medical business expands our portfolio beyond patient handling and mobility with innovative solutions for the operating room and diversifies our revenue stream with a sizable international surgical platform that will allow us to capitalize on emerging market growth. As a result, we will be able to leverage our existing sales channels and customer relationships in order to better address their needs. We look forward to playing an even greater role in improving patient care achieving greater levels of efficiency and reducing healthcare costs."

TRUMPF Medical's revenues for the last twelve months were approximately $250 million, having grown at a compound annual rate of 6 percent between 2010 and 2013. More than 80 percent of TRUMPF Medical's current revenue is outside North America, with approximately one-third of revenue in Asia/Pacific, the Middle East, Eastern Europe, and Latin America. In fiscal year 2015, Hill-Rom expects TRUMPF Medical to add approximately $0.12 - $0.15 per share in adjusted earnings. The transaction, which will be funded with a combination of cash and borrowings on the Company's existing credit facility, is subject to customary closing conditions and approval by regulatory authorities.

Conference Call Webcast and Dial-in Information

The Company will host a conference call and webcast to discuss the transaction today at 8:30 am ET.

Webcast: To join the live audio only webcast, go to http://www.media-server.com/m/p/4fb6vako.

Conference Call Audio Only Dial-in information: To join the live conference call, dial 877-304-8969 domestic callers / 631-291-4543 international callers. The following Confirmation Code is required for both: 61154098. Callers will need to provide their name, company affiliation and telephone number to the conference operator. A recording of the webcast/call audio will be available for telephone replay through June 22, 2014, domestically at 855-859-2056 and internationally at 404-537-3406. For the replay, callers will need to use confirmation code 61154098. If you are unable to listen to the live webcast or the telephone replay, the webcast will be archived at http://ir.hill-rom.com/events.cfm.

Source: Hill-Rom Holdings, Inc.