Hill-Rom Holdings, Inc.’s $330 million acquisition of Mortara Instrument


Hill-Rom Holdings, Inc. has completed its acquisition of Mortara Instrument, Inc., for $330 million in cash, primarily financed through a private offering of $300 million of senior unsecured notes.

Hill-Rom anticipates the structure of the acquisition will allow the company to qualify for a significant tax benefit, which at a net present value of approximately $40 million reduces the effective purchase price to approximately $290 million.

The acquisition accelerates Hill-Rom’s revenue growth, is accretive to adjusted gross and operating margins, and is immediately accretive to Hill-Rom’s 2017 full-year adjusted earnings. Hill-Rom will provide updated revenue and earnings guidance during its fiscal second quarter earnings announcement.

Mortara’s innovative portfolio of diagnostic cardiology devices is designed to serve the full continuum of clinical care, from acute care to primary care and clinical research organizations. Mortara’s comprehensive range of products, operating under the Mortara, Quinton® and Burdick® brands, include resting electrocardiography, cardiac stress exercise, Holter monitoring, ambulatory blood pressure monitoring, and cardiac and pulmonary rehabilitation and multi-parameter patient monitoring. These technologies are differentiated by industry-leading diagnostic algorithms, EMR connectivity and enhanced security features. Based in Milwaukee with offices in Australia, Italy, Germany, the Netherlands and the United Kingdom, Mortara has more than 400 employees globally and generated approximately $115 million in revenue in 2016.

Jones Day has advised Hill-Rom Holdings, Inc. on the deal with a team led by M&A partner Michael Murray.

Involved fees earner: Michael Murray – Jones Day;

Law Firms: Jones Day;

Clients: Hill-Rom Holdings, Inc.;

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Author: Ambrogio Visconti