Welch Allyn owner Hill-Rom to buy Mortara Instrument for $330 million
Thursday, January 12, 2017
Welch Allyn owner Hill-Rom Holdings Inc. has agreed to buy Milwaukee-based Mortara Instrument Inc., a maker of diagnostic cardiology and patient monitoring devices, for $330 million — a move Hill-Rom said will complement Welch Allyn's business.
"It's a great fit with our Welch Allyn business," Hill-Rom President and CEO John Greisch said today following the company's announcement that it has signed a definitive agreement to acquire Mortara.
Based in Milwaukee, Mortara is a global company, with offices in Australia, Italy, Germany, the Netherlands and the United Kingdom. It employs more than 400 people globally and generated approximately $115 million in revenue in 2016.
Chicago-based Hill-Rom said it anticipates the structure of the acquisition will allow the company to qualify for a significant tax benefit of approximately $40 million, reducing the effective purchase price to approximately $290 million.
In a phone interview with syracuse.com, Greisch said Mortara will become part of Hill-Rom's Front Line Care division, of which Skaneateles-based Welch Allyn is part.
Welch Allyn, a maker of medical diagnostic devices, employs 2,300 people, including more than 900 in Skaneateles. Hill-Rom bought Welch Allyn in September 2015 for $2.05 billion and announced four months ago that it will create 100 new jobs in Skaneateles.
Greisch said Welch Allyn has a small presence in the diagnostic cardiology device market, while Mortara has a major presence in that market. He said he did not expect the acquisition of Mortara to have an impact on the size of the Welch Allyn workforce.
Hill-Rom said in its announcement that Mortara's relationships with leading global electronic medical records providers offers Hill-Rom opportunities for improved revenue growth and increased profitability through the expansion of Welch Allyn's patient monitoring and diagnostic cardiology business.
Mortara Instrument CEO Dr. Justin Mortara intends to join Hill-Rom and continue in his leadership capacity at Mortara Instrument, reporting to Hill-Rom Front Line Care President Alton Shader, Hill-Rom said.
Hill-Rom said it intends to finance the acquisition through a combination of cash and borrowings. Greisch said he expects the transaction to close by the end of March.