Ecolab Inc. (ECL - Free Report) recently announced that it will acquire Bioquell PLC to enhance offerings for life sciences and healthcare environments. The transaction is expected to close by the first quarter of 2019.
Per the terms of the deal, Bioquell shareholders will receive 590 pence per share after the acquisition. Ecolab will leverage on Bioquell’s innovative bio-decontamination and isolator platforms for residue-free surface decontamination. Notably, Andover, U.K.-based Bioquell’s sales amounted to $37 million in 2017.
About Ecolab’s Healthcare & Life Sciences Unit
Ecolab serves the markets of hospitals and surgery centers, long-term care, OEM healthcare manufacturing, and pharmaceutical services.
Additionally, the company’s new Health Department Intelligence (“HDI”) platform helps foodservice operators to properly understand their health inspection results, improve health inspection performance, and manage food safety risks across multiple sites in a better way.
Recently, this Zacks Rank #4 (Sell) company launched a Life Sciences cleanroom program in North America, developed specially for pharmaceutical manufacturing. The program provides comprehensive cleaning and disinfection for both sterile and non-sterile applications.
Other Strategic Acquisitions & Collaborations
In a bid to gain market traction and boost profits, Ecolab continues to focus on investment in key growth businesses and bolt-on acquisitions as well as collaborations and agreements with other companies.
In October, Nalco Champion, an Ecolab company, collaborated with Accenture and Microsoft to launch a new unified, digital platform – Refined Knowledge – powered by ECOLAB3D.
In August, Nalco Champion and XOS entered into an exclusive distribution agreement to provide a chlorine monitoring solution for the global refining industry.
In January, Ecolab acquired Cascade Water Services Inc. — a privately-held company, based in New York. Cascade Water Services provides water treatment programs and services to the U.S. institutional market.
Impressive Stock Performance
Ecolab’s stock has outperformed its industry in a year’s time. The company has gained almost 16.9% against the industry’s 3.5% decline. The current level is also higher than the S&P 500 index’s 4.5% growth.
Stocks to Consider
A few better-ranked stocks in the broader medical space are Quidel Corporation (QDEL - Free Report) , STAAR Surgical Company (STAA - Free Report) and Veeva Systems (VEEV - Free Report) .
Quidel Corporation has a long-term expected earnings growth rate of 25% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
With a Zacks Rank #1, STAAR Surgical delivered an average four-quarter positive earnings surprise of 400%.
Veeva Systems’ long-term earnings growth rate is projected at 19.3%. The stock carries a Zacks Rank of 1.
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