Hillenbrand's spinoff of medical technology business closer to completion with SEC filing

By Lisa Kerner

Charlotte, N.C., Jan. 16 - The separation of Hillenbrand Industries, Inc.'s Hill-Rom operating company from its Batesville Casket operating company is now expected to be completed March 31.

Hillenbrand filed the amendment to the Batesville Holdings, Inc. form 10 registration statement with the Securities and Exchange Commission, a company news release stated.

With the separation, Hill-Rom and Batesville Casket can adopt appropriate capital structures to better execute their business plans, Hillenbrand said previously.

After discussions with the SEC, Hillenbrand determined that the statement of financial accounting standards no. 5, accounting for contingencies, is "an acceptable post separation accounting treatment for a judgment sharing agreement" with the separated companies.

The judgment sharing would be in regards to antitrust litigation pending against Hillenbrand, its Batesville Casket subsidiary and three unrelated national funeral home businesses, according to the release.

Hillenbrand and Batesville Casket don't believe they have committed any wrongdoing as the lawsuits allege.

"We are pleased to take this next step toward the separation of the two companies and provide further clarity on our separation timetable," Hillenbrand president Peter H. Soderberg said in the release.

"Our board and our management believe that separation of the two companies is the best way to unlock value and allow each company to focus on accelerating growth in their respective industries."

In May 2007, Hillenbrand's board approved a plan to spin off the company's Hill-Rom medical technology business through a tax-free dividend of its shares to Hillenbrand shareholders.

As previously reported, Batesville Casket would become the sole operating unit of Hillenbrand, remaining publicly traded under the Hillenbrand Industries name.

Hillenbrand is a Batesville, Ind.-based provider of medical technologies and funeral service products.

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