Hill-Rom — Merger or Acquisition (January 2017)
14 slides from Hill-Rom's merger presentation, Jan 10, 2017
Slide 1: Hill-Rom: Acquiring Mortara Instrument
Hill-Rom: Acquiring Mortara Instrument Complementary Combination Strengthens Clinical Focus on Diagnostic Cardiology and Patient Monitoring January 10, 2017
Slide 2: Forward Looking Statements
This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included herein that are not historical facts are forward-looking statements, including without limitation statements regarding the ability of Hill-Rom to
Slide 3: Table of Contents
Table of Contents: Mortara Instrument Acquisition Compelling Strategic Rationale Mortara Overview Attractive Global Markets Complementary Portfolio Substantial Financial Benefits Transaction Summary Enhanced Capabilities
Slide 4: Mortara Instrument: An Exciting Opportunity
Supporting expansion of broader range of diagnostic technologies to further mission of improving patient outcomes Mortara Instrument: An Exciting Opportunity Strengthening clinical focus on diagnostic cardiology and patient monitoring across the combined portfolio Leveraging deep relationships in ac
Slide 5: Compelling Strategic Rationale
Strengthening diagnostic & monitoring capabilitieswith accretive acquisition Provides broad, high quality products to existing diagnostic cardiology portfolioAccelerates new growth platform in cardiology-focused patient monitoringComplements and enhances Hill-Rom’s presence in vital signs monitoring
Slide 6: Transaction Summary
Deal Structure & Consideration Hill-Rom to acquire Mortara Instrument for $330M in cash Deal valued at ~$290M including the net present value of tax benefitFinanced with cash on hand and borrowings under existing credit facilities Leadership Mortara Instrument CEO, Dr. Justin Mortara, joining Hill-R
Slide 7: Mortara Instrument Overview
Mortara Instrument Overview Strengthening portfolio with comprehensive cardiology offerings DiagnosticCardiology Patient Monitoring Clinical Research Organization (CRO) Services Founded in 1982 with headquarters in Milwaukee, WIMore than 400 employees globallyServes customers in over 100 countries P
Slide 8: Attractive Global Markets
Attractive Global Markets Global Diagnostic Cardiology & Patient Monitoring Market US$ Billions 4% - 5%Market Growth CAGR Cardiovascular disease (CVD) is the #1 cause of death worldwideDiagnostic cardiology products are used in the non-invasive diagnosis of CVD across continuum of carePatient monito
Slide 9: Mortara Instrument: Comprehensive Solutions
Supplies Services Licensing Clinical Research Organization (CRO) Services Patient Monitoring Diagnostic Cardiology Non-invasive diagnostic cardiology devices including resting, ECG, stress, holter monitoring and ECG management Inpatient monitoring of acute and sub acute populations incorporating ECG
Slide 10: Key Focus Areas
Key Focus Areas Diagnostic Cardiology Primary Care ECG Screening Holter Monitoring Acute Care Resting ECG Testing Cardiac Stress Testing ECG Diagnostic Algorithms Clinical Research ECG Data Management PatientMonitoring Vital Signs Monitoring(NIBP, Temperature, SpO2) Continuous Patient Monitoring/Tel
Slide 11: Enhancing Hill-Rom Capabilities
Leveraging Hill-Rom’s scale and Mortara’s expertise to drive profitable growth in key markets Strengthens connectivity relationships with leading global electronic medical record providersEnhances Hill-Rom’s ability to offer secure & flexible connectivity options to customers Enhancing Hill-Rom Capa
Slide 12: Substantial Financial Benefits And Returns
Substantial Financial Benefits And Returns Accelerates revenue growth in key marketsAccretive to gross and operating marginsModestly accretive to fiscal 2017 Adjusted EPS Annual operational cost synergies of at least $10 million drive greater accretion beyond 2017Double-digit ROIC by year 3 Historic
Slide 13: Mortara Instrument: An Exciting Opportunity
Supporting expansion of broader range of diagnostic technologies to further mission of improving patient outcomes Mortara Instrument: An Exciting Opportunity Strengthening clinical focus on diagnostic cardiology and patient monitoring across the combined portfolio Leveraging deep relationships in ac
Slide 14: Hill-Rom: Acquiring Mortara Instrument
Hill-Rom: Acquiring Mortara Instrument Complementary Combination Strengthens Clinical Focus on Cardiac Diagnostics and Patient Monitoring January 10, 2017
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