Baxter Acquires Hillrom in the Largest Medical Device Acquisition of the Year

| Brandon G. Smith

Baxter International Inc. (“Baxter”) has agreed to acquire Hillrom for $10.5 billion ($156 per share) in a deal expected to close in 2022. After assumption of debt, the total enterprise value of the deal is approximately $12.4 billion. The deal had been rumored for about a month before it was announced.

According to Baxter’s investor presentation, the acquisition is expected to lead to “accelerated product and digital innovation across the care continuum and care settings.”


José (Joe) E. Almeida, Baxter’s chairman, president and chief executive officer.

The deal is the latest in a series of moves by Baxter, including extending a multi-year strategic agreement with Amazon Web Services, and acquiring certain assets related to PerClot Polysaccharide Hemostatic System from CryoLife.

The Hillrom acquisition is the largest in an already busy year for medical device mergers and acquisitions. Other notable acquisitions this year include Steris’ acquisition of Cantel Medical for $4.6 billion; Roche’s acquisition of GenMark Diagnostics for $1.8 billion; and Boston Scientific’s acquisitions of Lumenis’ surgical business and Preventice Solutions. As of late July, mergers and acquisitions in the medical device field were on pace to exceed last year’s performance.