Chicago-based Hill-Rom Holdings Inc. has completed its acquisition of Milwaukee-based Mortara Instrument Inc. for $330 million in cash.
Mortara, which designs, develops and manufactures diagnostic cardiology and patient monitoring solutions, announced its plan to sell to Hill-Rom last month. Mortara has more than 400 global employees and had about $115 million in 2016 revenue. As planned, chief executive officer Justin Mortara will continue to lead Mortara Instrument, reporting to Alton Shader, Hill-Rom Front Line Care president. The Mortara Instrument headquarters is expected to stay in Milwaukee.
Hill-Rom, which had about $2.7 billion in 2016 revenue and has about 10,000 global employees, financed most of the transaction with a $300 million private offering of senior unsecured notes. It expects the structure of the acquisition will allow it to qualify for about $40 million in tax benefits that would reduce the effective purchase price to $290 million. The global medical technology company said the acquisition will accelerate its revenue growth and be accretive to adjusted gross and operating margins. It is immediately accretive to Hill-Rom’s 2017 full-year adjusted earnings.
“We are excited to welcome the Mortara team to the Hill-Rom family,” said John Greisch, president and CEO of Hill-Rom. “Their decades of innovation, strong culture and commitment to excellence are an outstanding addition to our Front Line Care business, and we look forward to advancing our combined diagnostic cardiology and vitals monitoring capabilities for patients and their caregivers.”
