Hill-Rom to sell 3rd party rental biz to Universal Hospital Services

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Hill-Rom Holdings (NYSE:HRC) said today it inked a deal to sell its third-party rental business to Minneapolis, Minn.-based Universal Hospital Services for an undisclosed amount.

Under the deal, which is expected to close during Hill-Rom’s fiscal third quarter, Hill-Rom will transfer certain moveable medical equipment to UHS to be rented to customers.

The third-party rental business generated $35 million in sales during the fiscal 2017 year, and Hill-Rom said it expects to incur after-tax charges of approximately $20 million, most of which will hit during the company’s second fiscal quarter.

“Portfolio optimization remains a key component of our transformational journey. With this divestiture on track to close during our fiscal third quarter, we are well positioned to redirect resources and strategic investments towards innovation, enhanced commercial capabilities, and areas of our business poised to drive accelerated growth and value in the years ahead,” Hill-Rom prez & CEO John Greisch said in a press release.

Earlier this month, Hill-Rom said it launched improved workflow efficiency and security features for its Welch Allyn Connex vital signs monitoring devices enabled by healthcare IT security company Imprivata.

The post Hill-Rom to sell 3rd party rental biz to Universal Hospital Services appeared first on MassDevice.

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