Medical technology company Hillrom has agreed to divest select surgical consumable products and related assets to an Audax Private Equity affiliate for $170m.
The surgical consumable products include Bard-Parker conventional and safety scalpels and blades, along with additional operating room accessories.
The approximately 500 employees who support these products will be retained after the completion of the deal. Hillrom employs a total of around 10,000 people.
The surgical products being sold are expected to produce nearly $100m in annual revenue and contribute approximately $0.20 in adjusted earnings per diluted share on a pro forma basis for fiscal 2019.
Hillrom expects the divestiture to allow better focus on other categories across its portfolio.
Hillrom president and CEO John Groetelaars said: “The sale of these surgical products will strengthen our ability to focus our resources across our portfolio as we continue to build a differentiated suite of connected solutions for patients and caregivers.
“This transaction underscores our strategic focus on high-growth, high-margin categories where Hillrom can demonstrate leadership and supports our commitment to deliver on our promise of advancing connected care.”
The company develops solutions for earlier diagnosis and treatment, aiming to optimise surgical efficiency and speed-up patient recovery, and simplify clinical communication and care.
Its portfolio includes connected smart beds, patient lifts, assessment and monitoring technologies, caregiver communication tools, respiratory care devices and operating room equipment.
The divested products are part of the company’s Surgical Workflow and Positioning line and fall under the Surgical Access category. The line also comprises surgical and examination lights, gyn/uro/lap products, surgical tables, orthopaedic and spine products.