Medline Industries, the Northfield-based medical products manufacturer and distributor, has agreed to acquire the surgical equipment segment of Ecolab for nearly $1 billion.
The deal, announced this week, will give Medline innovative sterile drape products for surgeons, patients and operating room equipment as well as a fluid temperature management system.
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St. Paul, Minn.-based Ecolab disclosed in an earnings report this week that it is selling the unit to Medline for $950 million cash.
Medline declined to disclose how many employees it would gain in the deal and where they would be located.
The deal marks just the latest acquisition by Medline, the country’s largest medical products supplier, under CEO Jim Boyle, who took on the role last summer. In January, Medline acquired Florida-based medical supply company United Medco. Later in March, Medline announced it acquired the manufacturing rights and intellectual property of AG Cuffill from Hospitech Respiration.
In an August interview with Crain’s, Boyle said his growth plans included acquisitions, as well as infrastructure improvements, like information technology systems, new warehouses and inventory expansion.
With 38,000 employees in more than 125 countries, Medline sells everything from latex gloves to surgical tables and competes with the likes of Cardinal Health, McKesson and Owens & Minor for sales to hospitals and doctors' offices.
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Medline saw revenue grow 8% to $23.2 billion last year, according to information the company provided to Crain’s Data Center. As a privately held company, Medline is not forced to disclose other financial metrics, but a recent Fitch Ratings report says the company has a “high level of profitability.”
Even still, Medline carries a debt load from a 2021 private-equity deal in which Blackstone Group, Carlyle Group and Hellman & Friedman purchased a majority stake from the founding Mills family.
Fitch estimated in the March report that Medline’s EBITDA (earnings before interest, taxes, depreciation and amortization) leverage was approximately 6.1x for the year ended Dec. 31. The higher-than-expected debt levels stem from Medline’s decision to direct funds to management compensation upon the change in control of the company. Even still, Fitch concluded Medline has a stable outlook.
This story first appeared in Crain's Chicago Business.
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