Hillrom deals surgical consumables biz to Audax for $170m
Hillrom (NYSE:HRC) said today that it inked a deal to sell its surgical consumables business to private equity shop Audax for $170 million in cash.
Chicago-based Hillrom, fresh from a May rebranding, said the lines being sold to Audax include its Bard-Parker scalpels and blades and other operating room accessories. The surgical consumable unit’s 500 employees are slated to stay with the business after the deal’s expected close during Hillrom’s fiscal fourth quarter 2019 ending Sept. 30.
“The sale of these surgical products will strengthen our ability to focus our resources across our portfolio as we continue to build a differentiated suite of connected solutions for patients and caregivers,” president & CEO John Groetelaars said in prepared remarks. “This transaction underscores our strategic focus on high-growth, high-margin categories where Hillrom can demonstrate leadership and supports our commitment to deliver on our promise of advancing connected care.
“We are grateful to our teams in Caledonia, Mich., Las Piedras, Puerto Rico, and in the field for their dedication to our customers and to the company, and we are confident they will thrive under Audax ownership,” Groetelaars said.
Hillrom said the business is expected to put up adjusted earnings per share of 20¢ on $100 million in sales during fiscal 2019.
Goldman Sachs advised Hillrom on the deal, with Jones Day as legal advisor.