Medline Acquires Ecolab’s Surgical Drape Business for $950 Million

Hospital supply giant Medline is strengthening its presence in the operating room by announcing its plan to acquire Ecolab’s surgical solutions division for nearly $1 billion.

The acquisition includes Ecolab’s Microtek lines, which consist of sterile drapes for patient and operating room equipment coverage, as well as Ecolab’s fluid temperature management system. Medline stated that this purchase would also broaden its design and development capabilities in original equipment manufacturing.

Jim Pigott, President and Chief Operating Officer of Medline, expressed enthusiasm about the acquisition in a statement, saying, “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.”

Last year, Ecolab divided its North American healthcare operations into two separate businesses: surgical solutions and infection prevention products. The assets being acquired generated more than $400 million in sales in 2023. Ecolab will continue to offer health systems its infection prevention products, including endoscope sterilization services and supplies.

Christophe Beck, CEO of Ecolab, commented on the transaction as part of the first-quarter earnings release, stating, “This transaction builds on the deliberate actions we’ve taken to lay the foundation to transform our global healthcare business into a high-quality Ecolab business. It enables us to both deliver for our shareholders and provide more dedicated service to our important hospital customers, leveraging our leading environmental hygiene, instrument reprocessing offering, and water technologies.”

The $950 million cash deal is expected to be finalized in the latter half of this year.

Ecolab reported total quarterly sales of $3.8 billion earlier this week, which includes revenue from its industrial water purification and pest elimination businesses. Its healthcare and life sciences segment alone accounted for $382.9 million in revenue, roughly consistent with the same period the year before.