Chicago-based Hill-Rom Holdings Inc. is selling its third-party rental business to Universal Hospital Services Inc. to settle claims that it engaged in anticompetitive practices.
The company will transfer certain movable medical equipment to Minneapolis-based Universal Hospital Services. The equipment can then be rented to customers.
Universal Hospital Services is a medical equipment management and services company that filed an antitrust lawsuit against Hill-Rom. It has agreed to drop the lawsuit as part of the settlement.
Hill-Rom, a medical technology company, generated $35 million from the business, which is not considered core to its operations, during fiscal 2017. The company recorded $2.74 billion in fiscal 2017 revenues, according to S&P Capital IQ data.
The companies expect to close the deal, which is subject to closing conditions, during Hill-Rom's fiscal third quarter. Hill-Rom expects to incur after-tax charges of about $20 million, primarily during the fiscal second quarter of 2018.
