Ecolab announced today that it completed the sale of its global surgical solutions business to Medline for approximately $950 million.
In April, the companies announced that they struck a deal that would give Medline access to Ecolab’s line of Microtek sterile operating room drapes and more. Other offerings include operating room equipment and Ecolab’s fluid temperature management system.
At the time, Medline said it wants to “build on the deep legacy” of the Microtek brand by combining the reputation for innovation and reliability in these categories using its commercial footprint, market-leading supply chain capabilities and manufacturing expertise.
Ecolab said the proceeds from the transaction enhance its ability to invest in growth opportunities and return capital to shareholders. As a result, it plans to repurchase up to an additional $500 million of Ecolab stock during the second half of 2024. The company expects to repurchase the shares in the open market, in privately negotiated transactions from time to time and through purchases made in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
The company had approximately 285 million outstanding shares on June 30, 2024.
After the sale, Ecolab intends to continue serving hospitals through its infection prevention and instrument reprocessing businesses. The company’s infection prevention portfolio provides environmental hygiene programs to reduce hospital-acquired infections. Insturment reprocessing provides cleaning and sterilization solutions for instruments.
According to a news release, this “fits well with Ecolab’s growth model.” The company said it combines a technological anchor with proprietary consumables and services.
Jim Pigott, Medline president and COO, said:
“Our surgical solutions business is poised for a bright future as we continue to provide exceptional service and innovative solutions to our customers. With this acquisition, we are eager to collaborate with healthcare providers and cutting-edge medical device companies to bring innovative solutions to the surgical suite.”
