Featured Company News – Hill-Rom to Divest Volker Business; Unifies its Business Strategy to Front Line Care Business

LONDON, UK / ACCESSWIRE / June 29, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Hill-Rom Holdings, Inc. (NYSE: HRC), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=HRC. The Company announced on June 27, 2017, that it has entered into an agreement to sell its Volker business, to an affiliate of CoBe Capital. Under terms of the transaction, the CoBe affiliate will acquire multiple Volker assets and assume the operations and employees at the subsidiary’s current location in Witten, North-Westphalia, Germany. The financial terms of the agreement were not disclosed. For immediate access to our complimentary reports, including today’s coverage, register for free now at: http://protraderdaily.com/register/.

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The Announcement

This announcement from Hill-Rom comes in the light of Company’s constant efforts to optimize its portfolio and direct investment. Hill-Rom plans to focus on resources, and key, strategic growth platforms to deliver exceptional, long-term value to its shareholders.

Volker was initially established in 1912, in Witten, Germany, where it focused on delivering active patient-centered healthcare. Volker is one of Germany’s premiere producers of hospital and long-term care beds, and Hill-Rom acquired it in 2012. The acquisition further expanded Hill-Rom’s offering and portfolio to healthcare facilities.

In FY16, Volker’s net revenues stood at $40 million, subject to the execution of the agreement, Hill-Rom expects to record an after-tax special charge of about $30 million, principally for the non-cash write down of assets and transaction-related costs.

The Welch Allyn Campus Expansion

Prior to the announcement, on May 05, 2017, the Company reported that it had begun a facility expansion that would add about 100,000 square feet to its Welch Allyn Campus. This agreement came in light of the announcement in September 2016, when the Company committed to bringing more than 100 new jobs to Central New York where Welch Allyn had maintained a significant presence for more than 100 years. Welch Allyn is the largest component of Hill-Rom’s Front Line Care business, where Hill-Rom additionally plans to accommodate new positions, including R&D and engineering roles. Owing to the Trump’s policy of creating new jobs in the US itself, this announcement fuelled the Company’s growth strategy in the domestic market.

Company Growth Prospects

Hill-Rom is a global medical technology leader, which operates through more than 10,000 employees worldwide. The Company partners with healthcare providers in more than 100 nations, across different care settings. On May 18, 2017, the Company announced the launch of the new Hill-Rom 900 Accella bed system for higher acuity patients in intensive and acute care settings. The new bed system was made available in only selected markets outside the US.

Later, on May 22, 2017, the Company announced the launch of the new Hill-Rom® Envella™ Air Fluidized Therapy Bed, which allows the highest quality wound care for patients with advanced wounds. The Company observed different aspects, including increased bed depth, adjustable air flow, and sensing technologies, to advanced weight-based pressure distribution. Considering the extremely prevalent nature of pressure injuries, with one in 10 patients having it and one in 20 patients experiencing a facility-acquired pressure injury during their stay in the hospital, the demand for such a bed turns mandatory for efficient patient comfort and care.

The Company announced on May 26, 2017, a dividend of $0.18 per share payable on June 30, 2017, to shareholders of record as of the close of business on June 16, 2017.

Last Close Stock Review

Hill-Rom’s share price finished yesterday’s trading session at $79.97, rising 1.34%. A total volume of 315.18 thousand shares have exchanged hands. The Company’s stock price skyrocketed 12.55% in the last three months, 39.88% in the past six months, and 66.40% in the previous twelve months. Additionally, the stock soared 42.45% since the start of the year. Shares of the Company have a PE ratio of 34.48 and have a dividend yield of 0.90%. The stock currently has a market cap of $5.27 billion.

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