Hill-Rom plans $300m private offering to fund Mortara acquisition

Hill-Rom (NYSE:HRC) today announced a $300 million private placement with net proceeds to fund its acquisition of Mortara Instrument.

The Chicago-based company said it will be selling senior unsecured notes due 2025 during the round, which will be guaranteed on a senior unsecured basis by current and future Hill-Rom subsidiaries.

Funds raised in the private placement will support Hill-Rom’s $330 million acquisition of Mortara Instrument and its line of diagnostic cardiology and patient monitoring devices.

The company clarified that the private offering was not conditioned upon the completion of its Mortara acquisition, but that the acquisition would close after the offering, according to a press release.

Hill-Rom originally announced its acquisition of Mortara in January.

Milwaukee-based Mortara makes an eponymous line of cardiac monitoring devices, plus the Quinton and Burdick brands it acquired from Opko’s Cardiac Science in 2013. The company, which employs more 400 workers, posted sales of $115 million last year, Chicago-based Hill-Rom said.

Mortara CEO Justin Mortara is slated to stay on as leader of his namesake instrument business, reporting to Hill-Rom front-line care president Alton Shader, according to Hill-Rom, which also released preliminary numbers for its fiscal 1st quarter.

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