Hill-Rom Adds Surgical Equipment Supplier
(Batesville, Ind.) – Hill-Rom is growing once again with the acquisition of a Michigan manufacturer of scalpels, blades, and fluid collection products.
Hill-Rom, a Batesville-based hospital equipment manufacturer, announced Wednesday the completion of the $400 million deal to acquire Aspen Surgical Products. According to a company news release, Aspen provides a portfolio of well-established surgical consumable and specialty medical products focused on improving the safety of patients and health care professionals.
Aspen Surgical has annual revenue of approximately $120 million. The transaction was funded with a combination of cash and bank debt.
Hill-Rom CEO John Greisch says the move will help the company expand its standing in the surgical business.
“With the addition of Aspen Surgical, Hill-Rom is well positioned for growth and geographic expansion in our surgical business, particularly in the safety product segments. This acquisition further expands our global portfolio beyond our core franchise with a business that is immediately accretive to earnings per share and adds recurring revenue to our existing surgical platform,” Greisch said.
Former Aspen CEO Greg Pritchard is not the senior vice president and president of surgical and respiratory care at Hill-Rom.
“Aspen Surgical and Hill-Rom share a similar mission to enhance outcomes with products that help ensure a safe environment in surgical and other health care settings. We look forward to leveraging the valued Hill-Rom brand to expand Aspen Surgical’s presence around the world,” Pritchard said.
Also on Wednesday, Hill-Rom announced the results of its fiscal third quarter which ended June 30. Adjusted earnings per diluted share increased 19 percent to $0.56 from $0.47 due to stronger sales and cost reduction initiatives. Reported earnings per diluted share also increased to $0.37 from $0.02 in the prior year.
Hill-Rom’s quarterly revenue of $406 million increased 6 percent compared to last year or 9 percent on a constant currency basis. Domestic revenue decreased 6 percent to $258 million, while revenue outside the United States increased 34 percent to $148 million in the same period.
The company also lowered its expectations for the fourth quarter. Expected revenue will be between $413 and $421 million, a decline of 10 to 12 percent