Dive Brief:
- Medical products supplier Medline has agreed to acquire Ecolab’s global surgical solutions business for $950 million in cash, to gain its sterile drapes and fluid temperature management systems, the companies said on Tuesday.
- Ecolab makes sterile drapes for surgeons, patients and operating room equipment.
- The St. Paul, Minnesota-based company said it will continue to serve hospitals through its infection prevention and instrument reprocessing businesses, and the sale of surgical solutions will allow it to better focus on those lines to drive profitable long-term growth.
Dive Insight:
Ecolab’s procedure- and device-specific equipment drapes are designed to reduce the risk of infectious disease transmission, protecting healthcare workers and patients. Its patient temperature management systems warm fluids to support hypothermia prevention.
The surgical solutions business that Medline will acquire, which includes the Microtek product lines, generated more than $400 million in sales in 2023, Ecolab said.
Medline said it will bring its commercial footprint, supply chain capabilities and manufacturing expertise to the Microtek brand. The acquisition also adds design and development capabilities to Medline’s portfolio to support OEM customers, enabling it to offer complementary products, the Northfield, Illinois-based company said.
“We are pleased to have the opportunity to acquire a leading portfolio of operating room products with such a strong reputation for protecting patients and healthcare workers,” Jim Pigott, Medline’s president and chief operating officer, said in a statement. “With our commercial capability and focus on operational excellence, we believe that Medline is best positioned to grow this critical business and provide enhanced services to support our customers.”
Ecolab said the reprocessing business it is retaining provides cleaning and sterilization for instruments, which fits well with the company’s growth model because it combines a technological anchor with proprietary consumables and service. The infection prevention business offers environmental hygiene programs to reduce hospital-acquired infections.
The sale is expected to close in the second half of 2024, subject to regulatory clearances and other customary closing conditions.