In a strategic move aimed at bolstering its presence in the operating room, hospital supply giant Medline has announced plans to acquire Ecolab’s surgical solutions division at a price just shy of $1 billion. The deal encompasses a range of critical operating room products, including Ecolab’s Microtek lines of sterile drapes for covering patients and equipment, as well as its fluid temperature management system.
Medline, a leading provider of medical supplies and solutions, views the acquisition as an opportunity to expand its portfolio and enhance its design and development capabilities in original equipment manufacturing. Jim Pigott, President and Chief Operating Officer of Medline, expressed confidence in the acquisition, citing the strong reputation of Ecolab’s products in protecting patients and healthcare workers.
The transaction follows Ecolab’s strategic decision to split its North American healthcare operations into two separate entities last year: surgical solutions and infection prevention products. The assets being transferred generated more than $400 million in sales in 2023. Ecolab will continue to focus on providing health systems with infection prevention products, including endoscope sterilization services and supplies.
Christophe Beck, CEO of Ecolab, underscored the rationale behind the transaction, emphasizing the company’s commitment to transforming its global healthcare business. He highlighted Ecolab’s leading environmental hygiene, instrument reprocessing offering, and water technologies as key strengths that will enable the company to deliver value to shareholders while providing dedicated service to hospital customers.
The $950 million cash deal is expected to close in the latter half of this year, pending regulatory approvals. Ecolab reported total quarterly sales of $3.8 billion, including contributions from its industrial water purification and pest elimination businesses. The healthcare and life sciences segment, which accounted for $382.9 million in revenue, remained relatively flat compared to the same period the year before.
The acquisition signals Medline’s strategic intent to strengthen its position in the healthcare supply chain and underscores the ongoing evolution of the industry landscape. As both companies navigate the complexities of the healthcare market, the deal is poised to shape the future of operating room solutions and enhance the delivery of critical services to healthcare providers and patients alike.
