Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 3, 2021

Article Excerpt

BAXTER INTERNATIONAL INC., $82.71, New York symbol BAX, remains a buy. The company makes a wide range of medical devices, including intravenous pumps and kidney-dialysis equipment. Baxter has now agreed to acquire Hill-Rom Holdings Inc. (New York symbol HRC). Based in Chicago, Hill-Rom makes a variety of medical care devices and products, including intensive-care unit beds, operating tables, patient monitoring equipment and electronic diagnostic systems. The company will pay $156.00 a share in cash for Hill-Rom, for a total cost of $10.5 billion. If you include that firm’s debt, the total value of the transaction is $12.4 billion. To put that amount in context, Baxter’s market cap is $41.3 billion. Hill-Rom’s shares are trading at $151.68, which suggests investors do not expect a higher offer. If shareholders and regulators approve, Baxter expects to complete the purchase in early 2022. Big acquisitions like this add risk. However, Hill-Rom is a well-established leader in its niche markets. As well, the new operations will add $2.9 billion to…