It is a big sale in Onondaga County as high-tech medical products producer, Welch Allyn, is being sold to a larger competitor, Hill-Rom, for just over $2 billion. Bill Carey says the companies are trying to tamp down local concerns about the merger and potential cuts.
SKANEATELES, N.Y. -- It has been Onondaga County's largest privately-owned employer -- a producer of high-tech medical care products, Welch Allyn, is celebrating its 100th anniversary in Skaneateles.
But the company admits, it's been worried about the future. And now it says, it's ready to move.
"We found a partner in Hill-Rom that brings a tremendous amount of scale and capability in the marketplace. In this market, there's an awful lot of consolidation going on, so size really matters," said Welch Allyn President and CEO Steve Meyer.
"There's very little overlap between the two companies, either from a product standpoint or from a competitive standpoint. The opportunity to combine two of the best known brand names in health care and create one of the leading global brands in health care -- is what our overriding objective is, going forward," said Hill-Rom President and CEO John Greisch.
Talk of the acquisition and and any consolidation struck a sensitive chord in Central New York.
"Anytime, especially in a region like Central New York, which has experience with corporate combinations, anytime you see a combination like this there has to be a measure of reality and concern," said Centerstate CEO President Rob Simpson.
Government and business leaders are hoping to have plenty of contact with Hill-Rom, hoping to make the best case for hanging on to as many jobs as possible.
"That's a very important conversation to keep track of. And the county executive will be involved, hopefully, in that conversation to try to make sure that the new partners of Welch Allyn know that we're here to help them make the decision to keep those jobs here and perhaps expand their presence here in Onondaga County," said Onondaga County Deputy Executive William Fisher.
Hill-Rom officials say any talk of cuts is premature. That the merger will mean major savings in areas other than manufacturing. And when cuts do come, they may be elsewhere in a much bigger company.
"We've got a number of manufacturing plants around the world. Welch Allyn has two very large, very efficient ones," Greisch said. "We have an opportunity to consolidate some of our smaller facilities into some of our now-combined, larger facilities."
Welch Allyn leaders saying they think this is the best deal for them and the region.
"I think it sets the stage for growth which is something we need, moving forward. I'm very excited about the future of Welch Allyn," Meyer said.
The two companies expect the sale to be completed in September.