Ecolab Raises 2024 Profit Predictions by Dropping Surgical Division

The water treatments firm Ecolab increased its full-year earnings projection and announced that it will sell its worldwide surgical solutions division to private healthcare vendor Medline for $950 million in cash. 

The division produces sterile drape products for surgeons, consumers, and operating room devices, and generated over $400 million in sales in 2023. 

“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,” Stated the Ecolab’s CEO. 

It is anticipated that the acquisition will finalise in the latter part of 2024. 

Ecolab additionally boosted its modified profit projection for 2024 from its previous projection of $6.10 to $6.50 per share to around $6.40 and $6.70. 

The business stated that while the effect of global inflation is still difficult to estimate, the projection is for moderate but sustained aggregated demand manufacturing costs to ease after Q2.