Chicago company to acquire CNY-based Welch Allyn for $2 billion
Central New York-based medical device manufacturer Welch Allyn is being acquired by Chicago-based Hill-Rom, also a medical device manufacturer, for $2.05 billion in cash and stock, the companies announced Wednesday morning.
Welch Allyn is headquartered in Skaneateles Falls and the bulk of it's manufacturing operation is based there. The company also has a manufacturing operation in Tijuana, Mexico.
In a news release, the companies announced the newly-formed company will be based in Chicago. John Greisch, president and CEO of Hill-Rom, said that the company intends "to maintain a major presence in Skaneateles Falls."
It is unclear if there will be job cuts due to the acquisition, but Hill-Rom expects to save at least $40 million by 2018, "primarily through a combination of facility optimization, procurement efficiencies and general and administrative expense reductions." The Skaneateles Falls plant employs more than 1,000 people.
According to the news release, Greisch will be president and CEO of the combined company. Hill-Rom expects several members of Welch Allyn's senior management to join the company. Hill-Rom will also maintain the Welch Allyn brand.
"Combining with Hill-Rom will enable Welch Allyn to build on our important accomplishments over the last 100 years and play an even bigger role serving and meeting the evolving needs of patients and healthcare systems around the world," said Steve Meyer, president and CEO of Welch Allyn.
The deal is expected to be finalized by the end of September.