Top Executive of Hill-Rom says Federal Medical Device Tax had no connection with Welch Allyn Acquisition
The senior executive at Hill-Rom said Wednesday that the federal medical device tax had nothing to do with Welch Allyn Inc.'s decision to be acquired by Chicago-based Hill-Rom.
John Greisch, president and CEO of Chicago-based Hill-Rom Holdings Inc., said in a statement that their objective is to invest to grow the business, and Welch Allyn has been growing.
He further said their objective is to drive growth in the combined business, but he is not sure about the impact of it on any particular location.
Hill-Rom gave hint about the $2.05 billion acquisition of Skaneateles-based Welch Allyn Inc. announcing that there will be some job cuts. It expected to generate at least $440 million in cost savings by 2018 as a result of the combination of the two healthcare technology companies.
Hill-Rom has facilities all over the world, any of which could produce the savings. And sales growth could limit jobs cuts.
Hill-Rom and Welch Allyn make different products. Their product lines complement each other, which could help expand their sales.
For example, Hill-Rom makes hospital beds, and Welch Allyn makes devices that attach to hospital beds to allow remote monitoring of patients' vital signs.
Welch Allyn President and CEO Stephen Meyer said he cannot think of a single area where they can actually compete, as their product lines are complementary.
Greisch, who spent Wednesday afternoon meeting with employees at Welch Allyn's headquarters in Skaneateles Falls, said the two companies had been holding discussions for several months.
"It's been a very thoughtful set of discussions. I think a big part of it was the Allyn family having to feel comfortable with the company that would be taking over", said Greisch.
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