Ecolab to Acquire O.R. Solutions in Cash Deal
ST. PAUL, Minn.--(BUSINESS WIRE)--
Ecolab Inc. announced it has agreed to purchase the assets of O.R.
Solutions, Inc., a privately-held company based in Chantilly, VA. O.R.
Solutions is a leading developer and marketer of surgical fluid warming
and cooling systems in the United States. O.R. Solutions' systems are
designed to enhance patient safety and improve surgical outcomes by
maintaining the proper temperature of fluids used during surgery; each
procedure requires custom fit sterile draping. Numerous studies have
shown that using warm fluids during surgery is effective in helping
prevent infections. Cooling systems are used to maintain tissue health
during cardiac procedures and transplants.
Annual sales of the business to be acquired are approximately $55
million, with more than 85% of O.R. Solutions' sales from custom fit
sterile drapes. The purchase price is approximately $260 million for
O.R. Solutions, and the acquisition is expected to be accretive to
Ecolab's 2011 earnings. Completion of the transaction is expected to
occur upon receipt of regulatory clearance and satisfaction of other
customary closing conditions. No other details were announced.
Douglas M. Baker, Jr., Ecolab's Chairman, President and Chief Executive
Officer, commented on the announcement, saying, "We believe this will be
a terrific complement to our global Healthcare business. O.R. Solutions
has enjoyed strong growth and has significant upside potential in both
the U.S. and international markets. The acquisition will strengthen our
position in infection prevention, build on our surgical barrier
platform, and expand our solutions for the operating room. It will also
bring a strong sales and service team, adding depth and expertise to our
business.
"We believe this transaction will bring exciting growth potential for
our combined operations and additional opportunities for both companies'
employees. We look forward to completing the transaction and continuing
to expand our business and portfolio of infection prevention solutions."
With sales of $6 billion and more than 26,000 associates, Ecolab Inc.
(NYSE: ECL) is the global leader in cleaning, sanitizing, food safety
and infection prevention products and services. Ecolab delivers
comprehensive programs and services to foodservice, food and beverage
processing, healthcare, and hospitality markets in more than 160
countries. More news and information is available at www.ecolab.com.
This news release contains various "Forward-Looking Statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These include statements concerning the transaction's potential impact
on our earnings per share in 2011, future growth and potential receipt
of regulatory clearance. These statements, which represent Ecolab's
expectations or beliefs concerning various future events, are based on
current expectations that involve a number of risks and uncertainties
that could cause actual results to differ materially from those of such
Forward-Looking Statements. We caution that undue reliance should not be
placed on Forward-Looking Statements, which speak only as of the date
made.
Risks and uncertainties that may affect operating results and business
performance are set forth under Item 1A of our most recent Form 10-K and
include the vitality of the markets we serve; the impact of worldwide
economic factors such as the worldwide economy, credit markets, interest
rates and foreign currency risk; fluctuations in raw material and
delivered product costs; our ability to develop competitive advantages
through innovation; restraints on pricing flexibility due to contractual
obligations; pressure on operations from consolidation of customers,
vendors or competitors; the ability to acquire complementary businesses
and to effectively integrate such businesses; the impact of investments
to develop business systems or to optimize our business structure; the
costs and effects of complying with laws and regulations relating to the
environment and to the manufacture, storage, distribution, sale and use
of our products; changes in laws, regulations or accounting standards;
public health epidemics; the occurrence of litigation or claims, acts of
war, terrorism, severe weather or natural or man-made disasters; the
loss or insolvency of a major customer, supplier or distributor; our
ability to attract and retain high caliber management talent; and other
uncertainties or risks reported from time to time in our reports to the
Securities and Exchange Commission.
Except as may be required under applicable law, we undertake no duty to
update our Forward-Looking Statements.
(ECL-A)
Ecolab Inc.
Michael J. Monahan, 651-293-2809
Source: Ecolab Inc.
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