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Hill-Rom jettisons low-growth European hospital bed unit

Published 06/27/2017, 08:02 AM
© Reuters.  Hill-Rom jettisons low-growth European hospital bed unit
HRC
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  • Hill-Rom Holdings (NYSE:HRC) inks an agreement with a affiliate of private investment shop CoBe Capital for the sale of its Völker business, a German producer of hospital and long-term care beds for the European market. HRC acquired the business in 2012. Völker booked ~$40M in revenues in 2016.
  • Under the terms of the deal, CoBe will acquire certain Völker assets and assume operations and employees at its Witten, North Westphalia, Germany facility. The transaction should close in Q4. Financial terms are not disclosed.
  • HRC will record an after-tax charge of ~$30M for transaction costs and asset write-down. CEO John Greisch says the deal reflects the company's ongoing effort to optimize its portfolio and direct investment and resources to key strategic growth platforms.
  • Now read: Becton, Dickinson: A Quality Dividend Aristocrat With Double-Digit Payout Growth


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