HRC - Why Shares of Hill-Rom Holdings Jumped Today
Shares of medical equipment maker Hill-Rom Holdings (NYSE: HRC) closed up more than 7% today after reports that the company has rejected a takeover bid from Baxter International (NYSE: BAX) of $144 per share.
Baxter is hoping to add to its portfolio of equipment such as dialysis machines and IV pumps. The company has only grown about 3% annually since spinning off its treatments for rare diseases in 2015. Hill-Rom hasn't done any better, increasing sales by just over 2% per year in the same period. More impressively, it's increased net income 11% annually over that period.
Hill-Rom is also seeing positive results from its transformation initiative. It has been investing in new products, information technology, and geographic expansion -- namely in China. That's likely the momentum Baxter is trying to capture.
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Why Shares of Hill-Rom Holdings Jumped Today