Ecolab to sell global surgical unit for $950 mln, lifts 2024 profit forecast
April 30 (Reuters) -Water solutions company Ecolab ECL.N said on Tuesday it would sell its global surgical solutions business to private medical supplier Medline for $950 million in cash and raised its full-year profit forecast.
The unit made more than $400 million in sales last year and supplies sterile drape solutions for surgeons, patients and operating room equipment.
"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," said Ecolab CEO Christophe Beck.
The deal is expected to close in the second half of the year.
Ecolab also said it would continue to serve hospitals through its infection prevention and instrument reprocessing businesses, which provide environmental hygiene programs and cleaning and sterilization solutions for instruments.
The St. Paul, Minnesota-based firm also raised its full-year adjusted profit forecast to between $6.40 and $6.70 per share, from its earlier estimate $6.10 to $6.50.
The forecast assumes soft but stable macroeconomic demand and delivered product costs easing through the third quarter, though the impact of global inflation remains hard to predict, the company said.
For the second quarter, Ecolab expects adjusted profit between $1.62 and $1.72 per share, higher than analysts' average estimate of $1.54 per share, according to LSEG data.
It posted an adjusted profit of $1.34 per share for the first quarter, in line with estimates, as the institutional and specialty segment's operating income grew 91%.
Reporting by Kabir Dweit in Bengaluru; Editing by Devika Syamnath
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
