Hill-Rom deals Völker bed biz to CoBe Capital

Hill-Rom (NYSE:HRC) said today that it’s dealing its Völker business, which makes hospital and long-term care beds for the European market, to CoBe Capital for an unspecified amount.

The deal, expected to close during the 4th quarter, includes operations and workers at a Völker plant in Witten, Germany, Chicago-based Hill-Rom said. The company paid $85 million in 2012 for Völker, which put up sales of about $40 million last year.

“This transaction reflects Hill-Rom’s ongoing efforts to optimize our portfolio and direct investment, resources and focus on key, strategic growth platforms,” president & CEO John Greisch said in prepared remarks.

Hill-Rom said it expects the divestiture to deliver an after-tax charge of roughly $30 million, mostly on the non-cash write down of assets and transaction-related costs. It’s part of the company’s move to ditch noon-core assets such as its architectural products and WatchChild fetal monitoring businesses, which together put up sales of about $35 million in 2016.

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