Dec. 13—BATESVILLE — Baxter, Inc. has announced that it has completed its acquisition of Hillrom.

According to the release, Baxter paid $156 in cash per share of Hillrom common stock for a total purchase price of $10.5 billion based on Hillrom share counts at closing. The total enterprise value was approximately $12.5 billion including Hillrom's outstanding debt assumptions.

Baxter's chairman, president and chief executive officer Jose (Joe) E. Almeida said that the Baxter-Hillrom acquisition will allow the company a new wave of potential to drive greater impact for those served worldwide by the two previously separate enterprises.

"Integrating our complementary capabilities introduces additional opportunities for growth across our broad geographic footprint," Almeida said. "It also creates remarkable new possibilities for connectivity with leading-edge digital health innovation focused on enhancing care, lowering costs and increasing workflow efficiency."

The proposed acquisition was announced on September 2 of this year.

Baxter said in its press release that the company plans to build on its "robust global footprint" to expand legacy Hillrom and Welch Allyn products into new international markets. The goal is to bring the collective portfolio of products and services to even more patients and providers worldwide.

Both companies have a strong legacy as socially responsible corporate citizens, according to the release. Each has been recognized for achievements in workplace diversity and corporate responsibility and for fostering an environment that supports and encourages high performance, respect for individuals and professional growth.

Baxter announced that they expect the Hillrom acquisition to result in approximately $250 million on annual pre-tax cost synergies by the end of year three. This excludes any potential new revenue growth opportunities resulting from the combination of the two companies.

Additionally, the transaction is expected to be low double-digit accumulative to Baxter's adjusted earnings per share (EPS) in the first full year post close, increasing by more than 20% by the third year following closing.

Baxter funded the acquisition and the refinancing of certain assumed indebtedness of Hillrom through the issuance of $7.8 billion in fixed and floating rate bonds, according to their public documentation. Additionally, Baxter has $4 billion in drawn three- and five-year floating rate term loan agreements and the remainder was funded through cash on hand. The weighted average cost of the final acquisition financing is approximately 2% with a weighted average maturity of approximately 7 years.