Hill-Rom announces takeover of Volker

Hill-Rom has announced a definitive agreement to purchase Volker, a privately-held company specialising in bed frames, surfaces and furniture for care settings.

The Germany-based company will be acquired for around $85 million (54.37 million pounds), a move that is expected to improve Hill-Rom's commercial position in Europe, while complementing its existing product range.

Volker supplies products for use in long-term and acute care contexts and generated annual revenue of around $100 million in 2010, allowing Hill-Rom to take advantage of well-developed sales channels and customer relationships.

The transaction is forecast to close within the first quarter of 2012 and will not have an impact on Hill-Rom's financial results next year, but is expected to be accretive after this.

John Greisch, president and chief executive officer of Hill-Rom, said: "Our companies share similar missions and approaches to enhancing outcomes for patients and caregivers. We look forward to expanding the presence of Volker's exceptional products around the world."

According to financial results published in October 2011, Hill-Rom was able to generate revenues of $1.59 billion in the last 12 months, a year-on-year growth of eight percent.