Baxter Writes Off $3.1 Billion, or Nearly One Third, of Hillrom Acquisition
Impairment charges come just one year after the acquisition.
October 27, 2022
One year after acquiring HillRom for $10.5 billion, Baxter International (BAX), a healthcare products maker, is acknowledging it overpaid. In its latest quarterly filing, Baxter revealed it’s taking a $2.8 billion goodwill impairment charge related to Hillrom.
The charge is the equivalent of 41.2% of the goodwill recorded in connection with the Hillrom acquisition and breaks down as follows:
—$1.4 billion goodwill impairment for the Patient Support Systems reporting unit
—$1.0 billion goodwill impairment for the Front Line Care reporting unit
—$0.4 billion goodwill impairment for the Surgical Solutions unit
In addition, Baxter recognized pre-tax impairment charges of $332 million to reduce the carrying amounts of certain indefinite-lived intangible assets related to trade names acquired in the Hillrom acquisition.
In all, the goodwill and intangible asset impairments are the equivalent of 29.5% of the acquisition price.
Related: RMD, COO, HOLX, TFX
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