Hill-Rom buys out Encompass’ stake in joint venture

Hill-Rom has taken 100 percent control of its surface replacement systems joint venture with manufacturer Encompass Group.

The transaction, which will not have a material impact on Hill-Rom's 2011 financial outlook, sees the company acquire Encompass' 40 percent share of the Encompass TSS venture, which was created just over a year ago.

This joint initiative concerns the sale and distribution of a range of products in this business area, taking advantage of the brand recognition of Encompass' AccuMax and MaxiFloat products, as well as Hill-Rom's expertise in the therapy surface market.

Hill-Rom explained that it has bought out its partner in response to the "excellent progress" the venture has made in the surface replacement sector.

"The buyout will allow Hill-Rom to better align its sales channels and fully integrate Encompass TSS products and services, enhancing Hill-Rom's customer experience," the company added.

In September 2010, Hill-Rom expanded its range of offerings in this category via the launch of the P500 Therapy Surface.