Hill-Rom to Buy Trumpf Medical

Hill-Rom Holdings Inc. will 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 fourth quarter (end of September).

Trumpf Medical, based in Germany, makes operating room (O.R.) 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 O.R. solutions doubles Hill-Rom’s surgical portfolio. This acquisition also strengthens the Trumpf’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, according to Hill-Rom. More than 80 percent of Trumpf’s current revenue is outside North America, with approximately one-third of revenue in Asia-Pacific, the Middle East, Eastern Europe, and Latin America.