Transaction, if approved by Bioquell shareholders, is expected to close in the first quarter of 2019
Ecolab, the US hygiene giant, has made an offer to acquire Bioquell in a deal worth £140 million. Headquartered in Andover, UK, Bioquell specialises in biodecontamination for the life sciences and healthcare industries.
Ecolab said in a statement that under the terms of Ecolab’s offer, Bioquell shareholders will receive 590 pence per share; a 40% premium to Bioquell's closing share price of 420p on Thursday 29 November.
Bioquell’s 2017 sales were approximately £29 million (US$37 million).
By acquiring Bioquell, Ecolab broadens its portfolio of products and services. The move is part of the company’s strategy to grow its life sciences and healthcare businesses.
Commenting on the offer, Elizabeth Simermeyer, Executive Vice President, Life Sciences, Ecolab, said: "Bioquell’s biodecontamination solutions complement Ecolab’s daily cleaning and disinfection offerings for cleanrooms and other areas that require an aseptic environment. With Bioquell’s suite of solutions and services, Ecolab will offer one of the most comprehensive portfolios of cleaning and decontamination solutions for pharmaceutical and health care environments."
Bioquell’s chairman, Ian Johnson, said: “As part of Ecolab, Bioquell will be able to drive faster strategic growth in both life sciences and healthcare markets leveraging Ecolab's extensive global footprint.”
CT understands that Bioquell directors have unanimously recommended shareholders vote in favour of the deal.
“Ecolab's offer provides Bioquell Shareholders with a certain cash exit at a premium to the price at which the company's shares have traded recently and is supported by Bioquell Shareholders representing, in aggregate, approximately 55.10% of the existing issued ordinary share capital of Bioquell,” Johnson said.
Ecolab, which provides water, hygiene and energy technologies and services, is valued at more than US$40bn.
The transaction, if approved by Bioquell shareholders, is expected to close in the first quarter of 2019.