Ecolab Closes Sale of Global Surgical Solutions Business
01 August 2024 - 11:05PM
Business Wire
Announces Intent to
Repurchase up to $500 Million of Its Stock
Ecolab Inc. today closed on the sale of its global surgical
solutions business to Medline for total consideration of
approximately $950 million in cash. With Ecolab’s strong balance
sheet, the proceeds from this transaction enhance the company’s
ability to invest in attractive growth opportunities and return
capital to shareholders. Therefore, the company announced its
intent to repurchase up to an additional $500 million of Ecolab
stock during the second half of 2024.
Ecolab will continue to serve hospitals through its infection
prevention and instrument reprocessing businesses. Infection
prevention provides environmental hygiene programs to reduce
hospital acquired infections. Instrument reprocessing provides
cleaning and sterilization solutions for instruments, which fits
well with Ecolab’s growth model as it combines a technological
anchor with proprietary consumables and service.
The company expects to repurchase the shares in the open market;
in privately negotiated transactions from time to time, depending
on market conditions; and through purchases made in accordance with
Rule 10b5-1 of the Securities Exchange Act of 1934. Ecolab had
approximately 285 million shares outstanding on June 30, 2024. The
expected repurchases would be pursuant to the previously announced
February 2015 and November 2022 share repurchase authorizations by
Ecolab’s Board of Directors.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL)
is a global sustainability leader offering water, hygiene and
infection prevention solutions and services that protect people and
the resources vital to life. Building on a century of innovation,
Ecolab has annual sales of $15 billion, employs more than 46,000
associates and operates in more than 170 countries around the
world. The company delivers comprehensive science-based solutions,
data-driven insights and world-class service to advance food
safety, maintain clean and safe environments, and optimize water
and energy use. Ecolab’s innovative solutions improve operational
efficiencies and sustainability for customers in the food,
healthcare, life sciences, hospitality and industrial markets.
www.ecolab.com
Follow us on LinkedIn @Ecolab, Twitter @Ecolab, Instagram
@Ecolab_Inc and Facebook @Ecolab.
Cautionary Statements Regarding
Forward-Looking Information
This news release contains forward looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, but are not limited
to, statements regarding uses of cash, including share repurchases
and investments. These statements are based on the current
expectations of management. There are a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements included in this news release.
With respect to share repurchase activity, numerous factors will
impact repurchase actions, including market conditions and company
cashflows.
Additional risks and uncertainties are set forth under Item 1A
of our most recent Form 10-K, and our other public filings with the
Securities and Exchange Commission (“SEC”), and include the impact
of economic factors such as the worldwide economy, interest rates,
foreign currency risk, reduced sales and earnings in our
international operations resulting from the weakening of local
currencies versus the U.S. dollar, demand uncertainty, supply chain
challenges and inflation; the vitality of the markets we serve;
exposure to global economic, political and legal risks related to
our international operations, including geopolitical instability
and the escalation of armed conflicts; our ability to successfully
execute organizational change and management transitions;
information technology infrastructure failures or breaches in data
security; difficulty in procuring raw materials or fluctuations in
raw material costs; the occurrence of severe public health
outbreaks not limited to COVID-19; our ability to acquire
complementary businesses and to effectively integrate such
businesses; and other uncertainties or risks reported from time to
time in our reports to the SEC. In light of these risks,
uncertainties and factors, the forward-looking events discussed in
this news release may not occur. We caution that undue reliance
should not be placed on forward-looking statements, which speak
only as of the date made. Ecolab does not undertake, and expressly
disclaims, any duty to update any forward-looking statement, except
as required by law.
(ECL-C)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731905177/en/
Investor Contacts: Andrew C. Hedberg +1 651 250 2185
Cairn Clark +1 651 250 2291 Press Contacts Nigel Glennie +1
651 250 4724 MediaRelations@ecolab.com
Ecolab (NYSE:ECL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Ecolab (NYSE:ECL)
Historical Stock Chart
From Sep 2023 to Sep 2024