US-based healthcare company Medline has announced a definitive agreement to acquire the surgical solutions business from Ecolab for $950m.
The transaction, subject to standard closing conditions and regulatory approvals, is anticipated to be finalised in the second half of 2024.
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This deal will provide Medline with sterile drape solutions for surgeons and Ecolab’s fluid temperature management system.
Medline president and chief operating officer Jim Pigott 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.
“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.”
The acquisition also encompasses Microtek product lines, which Medline intends to further develop by leveraging its commercial, supply chain, and manufacturing strengths.
This deal is poised to bolster Medline’s design and development capabilities, enabling the company to offer complementary products that safeguard patients and sophisticated equipment in surgical suites.
The transaction value was revealed by Ecolab in its Q1 2024 results.
Ecolab posted a reported net sales of $3.75bn in Q1 2024, marking a 5% increase from the $3.57bn in the same period of last year.
The net income attributable to Ecolab for the quarter stood at $412.1m, a 77% rise compared to the previous year’s $233.4m.
Last December, Medline committed a further $300m to its Healthcare Resilience Initiative (HRI), aimed at reinforcing the long-term supply chain resilience for healthcare providers.
This investment added to the substantial $2bn that Medline has injected into the HRI since 2018.
