Medline announced that it has entered into a definitive agreement to acquire Ecolab’s global surgical solutions business, including the Microtek product lines. Once the deal is closed, the acquisition will provide Medline with innovative sterile drape solutions for surgeons, patients, operating room equipment, and Ecolab’s fluid temperature management system.
Medline plans to build on Microtek’s legacy by combining Microtek’s reputation for innovation and reliability in these categories with Medline’s expansive commercial footprint, market-leading supply chain capabilities, and robust manufacturing expertise.
This deal also creates an opportunity to add design and development capabilities to Medline’s portfolio to support OEM customers. And with these new capabilities, Medline can provide complementary products to protect both patients and cutting-edge equipment in the surgical suites.
Ecolab has agreed to sell its global surgical solutions business to Medline for $950 million in cash, with an anticipated gain recorded in gains and charges at closing. This business delivered over $400 million in sales last year and is a leading supplier of innovative sterile drape solutions for surgeons, patients, and operating room equipment. And Ecolab will continue to serve hospitals through its infection prevention and instrument reprocessing businesses. Infection prevention provides environmental hygiene programs to reduce hospital-acquired infections. Plus, instrument reprocessing provides cleaning and sterilization solutions for instruments, which fits well with Ecolab’s growth model as it combines a technological anchor with proprietary consumables and services.
The deal is expected to close in the second half of 2024, subject to standard closing conditions and regulatory approvals.
KEY QUOTES:
“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. 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. This acquisition brings us proven innovation, expanded service offerings, and a shared legacy of highest quality products. As we embark on this exciting new chapter, we are committed to a seamless integration for both employees and customers.”
“We look forward to welcoming Ecolab surgical solutions team members to the Medline family and together continuing to serve our customers with innovation, quality, and a shared focus on making healthcare run better.”
- Jim Pigott, president and chief operating officer for Medline
