M&A · Healthcare · Surgical & Medical Instruments & Apparatus
Baxter International Inc to acquire Hill-Rom Holdings, Inc.
Announced Sep 2, 2021 · Closed Dec 13, 2021
Deal value$10.50BEV $12.33B
Premium26.0%To unaffected price
EV / Adj. EBITDA22.8x4.2x EV / Revenue
ConsiderationAll cash$156.00 per share
Transaction
- Acquirer
- Baxter International Inc (BAX)
- Target
- Hill-Rom Holdings, Inc.
- Buyer type
- Strategic
- Offer price per share
- $156.00
- Enterprise value
- $12.33B
- Status
- Closed Dec 13, 2021
Deal protections
- Break fee (target pays)
- $367M · 3.5%
- Reverse fee (buyer pays)
- $420M · 4.0%
- Go-shop
- No-shop
- Financing
- Committed · JPMorgan, Citigroup
Advisors
- To the acquirer
- Not disclosed
- To the target
- Goldman Sachs, BofA Securities
- BofA Securities fee
- $11.0M
Sector context · Healthcare
- Comparable deals
- 25 in the prior 24 months
- Premium
- 26.0% vs. 44.0% sector median
- EV / Adj. EBITDA
- 22.8x vs. 19.3x sector median
- Break fee
- 3.5% vs. 3.3% sector median
Timeline
- AnnouncedSep 2, 2021
- Proxy filedOct 1, 2021
- Definitive proxyOct 20, 2021
- Shareholder voteDec 2, 2021
- ClosedDec 13, 2021
Valuation · fairness opinions
Discounted cash flowGoldman Sachs$137.00$187.00
Future share priceGoldman Sachs$109.00$155.00
Premiums paidGoldman Sachs$145.00$172.00
52-week trading rangeGoldman Sachs$126.00$151.00
Premiums paidGoldman Sachs$105.00$172.00
Trading comparablesBofA Securities$117.00$156.75
Trading comparablesBofA Securities$114.50$157.75
Precedent transactionsBofA Securities$104.25$141.75
Precedent transactionsBofA Securities$90.50$141.50
Discounted cash flowBofA Securities$130.50$208.25
Offer $156.00
Implied value per Hill-Rom Holdings, Inc. share by analysis, from Goldman Sachs and BofA Securities · DCF discount rate 7.5%–8.5%.