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Ecolab's (ECL) Gallay Medical Buyout to Boost Healthcare Arm

Zacks Equity Research

Ecolab Inc. ECL recently announced the acquisition of Gallay Medical & Scientific with a view to boost the company’s Healthcare arm. The terms of the deal have been kept under the wraps.

For investors’ notice, Gallay Medical is a provider of medical devices, equipment, chemistry and service to the medical, dental, scientific and pharmaceutical industries. It has workshops and warehouses throughout Australia and New Zealand.

Rationale Behind the Deal

Ecolab Healthcare offers a comprehensive range of sustainable infection prevention solutions to help healthcare facilities deliver a cleaner, safer and healthier environment. The company’s Acute Care to Emergency Medical Services offer innovative, enterprise-wide health, quality and safety protection solutions to optimize efficiency and lower costs.

Hence, the integration of Gallay Medical and its wide network of products and services is likely to fortify Ecolab’s foothold in the global healthcare market.

Other Developments

In recent times, Ecolab witnessed some notable developments in its Healthcare arm.

For instance, in August, the company introduced the next generation of open basin fluid warming systems — the CoreTemp Fluid Management System.

Such enhancements in product portfolio will help the company to drive organic sales.

Apart from this, Ecolab has added digital dashboards, which will provide greater visibility, measurement and analysis of current practices, including predictive analytics to help forecast and reduce infection rates. Notably, Ecolab’s Hand Hygiene Compliance Monitoring System and the Operating Room and Patient Room Programs utilizing DAZO monitoring and Central Sterile Process Indicators connect with Ecolab’s digital dashboards.

Market Prospects

ResearchandMarkets predicts the global healthcare market to touch $8542 billion between 2018 and 2022 at a rate of 7.3%. Rapid growth in the elderly population and strong economic growth in emerging markets currently work in favor of the market.

However, Ecolab faces stiff competition from bigwigs like P&G PG, Unilever UN and Colgate Palmolive CL.

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Ecolab Inc. (ECL) : Free Stock Analysis Report
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