A Medical Device Daily
Ecolab (St. Paul, Minnesota) reported that it has completed its previously disclosed $275 million purchase of Microtek Medical Holdings (Alpharetta, Georgia), a manufacturer of infection control products for healthcare and acute care facilities specializes in infection barrier equipment drapes, patient drapes, fluid control products and operating room cleanup systems.
Microtek shareholders voted in favor of the proposed sale of the company to Ecolab.
Ecolab, which first disclosed the acquisition in August (Medical Device Daily, Aug. 9, 2007), will pay $6.30 per Microtek share for the roughly 43.7 million shares of Microtek common stock outstanding as of Nov. 9.
“Microtek represents a terrific addition to the Ecolab family, and furthers our efforts to become a leader in providing comprehensive solutions to significantly reduce infections and contamination in the healthcare environment,” said Ecolab’s President/CEO and Chairman, Douglas Baker, Jr. “By combining Microtek’s excellent barrier product lines with our complementary strength in skin care, disinfectants and central sterile, Ecolab is now the only company that can offer system-wide solutions for healthcare facilities that help improve operational efficiencies, reduce infections, and most importantly, improve patient safety,” he added.
Microtek reported 2006 sales of $142 million.
Biotechnology giant Genzyme (Cambridge, Massachusetts) reported that it plans to acquire the diagnostics division of privately held Diagnostic Chemicals (Charlottetown, Prince Edward Island) for about $56.5 million.
Diagnostic Chemicals’ portfolio includes more than 50 clinical chemistry reagents and the provision of diagnostics operations in Prince Edward Island, Canada and Connecticut, according to a filing with the U.S. Securities and Exchange Commission.
The diagnostics business generated $21 million in revenue for FY07, which closed Aug. 31, according to officials. Diagnostic Chemicals will become a part of Genzyme’s diagnostics business unit.
The deal, which was struck Nov. 2, is expected to close in December. The transaction does not include Prince Edward Island-based Diagnostic Chemicals’ biopharmaceutical assets, the companies reported.
In other dealmaking news: MedQuest (Alpharetta, Georgia), a national provider of diagnostic imaging services, has officially merged with Novant Health (Winston-Salem, North Carolina) and will operate as a subsidiary of Novant.
Novant, which first disclosed the merger plans in August (MDD, Aug. 15, 2007), purchased MedQuest for $45 million, and immediately after the purchase MedQuest will continue to have about $369 million of debt outstanding.
If MedQuest achieves agreed upon financial metrics during 2008, Novant will pay up to an additional $35 million.
MedQuest’s existing management team, which will participate in a portion of the compensation being paid to existing stockholders in the transaction (including the contingent portion), continues to lead the company and there will be no immediate changes for MedQuest employees or customers, the companies said.
Novant is a not-for-profit integrated healthcare system serving North Carolina and South Carolina. It consists of an 800-physician medical group and eight hospitals.
MedQuest is a for-profit diagnostic imaging company that owns and operates 92 outpatient centers in 13 states. MedQuest centers offer diagnostic imaging services, such as MRI, CT, nuclear medicine, ultrasound, mammography, bone densitometry, fluoroscopy and X-ray.