SCHUMER, IN PERSONAL PHONE CALL WITH HILL-ROM CEO JOHN GREISCH, URGES COMPANY TO PROTECT JOBS AFTER MERGER; CITES TOP-NOTCH WORKFORCE AS THE KEY TO WELCH ALLYN’S PROFITABILITY AND SUCCESS
Citing Large and Modern Plant and Productive Workforce, Schumer Urged Hill-Rom CEO To Maintain and Grow Welch Allyn's Presence In Skaneateles Falls
Schumer To New Welch Allyn CEO: Keep Jobs in CNY
U.S. Senator Charles E. Schumer spoke directly to John Greisch, CEO of Hill-Rome Holdings, Inc.to strongly urge Mr. Greisch to maintain the workforce at Welch Allyn following the acquisition. Yesterday, after learning of the Hill-Rom Holdings, Inc. and Welch Allyn merger, Schumer reiterated previous comments that Welch Allyn is an important part of the Central New York economy and preserving jobs in the region is his top priority. Noting that the two leading medical device firms sell different kinds of products, Schumer expressed his hope that the merger can lead to stable and even positive growth for the product-development and manufacturing elements of the Welch Allyn business.
“Welch Allyn is an anchor that helps sustain a healthy and growing economy in Central New York. That’s why I made it very clear to the new CEO Mr. Greisch that Welch-Allen’s world-class 1000-plus workforce is the prime reason for their success and profitability, and that – as a result of this merger – those workers should be protected and rewarded for that work,” said Senator Schumer. “Post-merger the Skaneateles plant would still be one of the largest and most efficient in the larger firm, and I believe this will give the workforce here an opportunity to continue to do what they do so well.”
Schumer told Greisch he hoped Hill-Rom would preserve the jobs at Welch-Allyn following the acquisition. Schumer said that given the lack of overlap in the various products offered by each company, he urged the new, larger firm would not undertake the consolidations and employee terminations typically seen in corporate acquisitions. While Hill-Rom needs to remain competitive, citing worker efficiency, plant size and the modern facilities, Schumer expressed his confidence that many of the Welch Allyn jobs, particularly at the Skaneateles plant in Central New York, would be part of Hill-Rom following the acquisition.
Hill-Rom Holdings, Inc. is an Indiana-based company with approximately 8,000 employees worldwide. The company specializes in manufacturing hospital products such as hospital beds, furniture, and medical technology equipment.
Welch Allyn, Inc. is a New York-based company with approximately 2,600 employees in 26 countries. Welch Allyn specializes in manufacturing physical examination instruments and electronic monitoring systems for hospitals around the world.
Under the terms of the agreement Hill-Rom would acquire Welch Allyn for approximately $2.05 billion in cash and stock, including $1.625 billion in cash and 8.1 million newly issued shares of Hil-Rom common stock for Welch Allyn’s Board of Directors. Hill-Rom projects that it will generate $2.6 billion in revenues and over $500 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). A combined Hill-Rom and Welch Allyn will include approximately 10,000 employees in over 30 countries, allowing the company to achieve greater cost efficiencies and provide quality care to hundreds of thousands of patients worldwide. The new company will move from Hill-Rom’s previous headquarters of Batesville, Indiana to Chicago while still preserving Welch Allyn’s presence in Skaneateles Falls, New York. The acquisition is expected to be completed by the end of September 2015.