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Bioquell shares surge after US hygiene giant Ecolab agrees to buy the British firm for £140mln

Published: 20:50 30 Nov 2018 AEDT

hospital
Bioquell decontaminates hospitals and research labs

US hygiene giant Ecolab Inc (NYSE:ECL), which counts Bill Gates as one of its shareholders, has agreed to buy British infection-control firm Bioquell PLC (LON:BQE) in a deal valued at £140.51mln.

 Bioquell, which decontaminates hospitals and research labs, has accepted an offer of 590p for the almost 100-year-old company. The offer represents a 40.48% premium to the closing share price of 420p on Thursday.

Shares in Bioquell surged 37% to 575p in morning trading.

Microsoft founder Bill Gates owns about 12% of Ecolab after buying more share in March.

Ecolab, which provides water, hygiene and energy technologies and services, is valued at more than US$40bn.

Broader scope

The acquisition of Bioquell will broaden Ecolab’s portfolio of products and services as part of the US firm’s strategy to grow its life sciences and healthcare businesses.

Ecolab said Bioquell’s expertise in bio-decontamination and deep-cleaning complements Ecolab's daily cleaning and disinfection offerings for cleanrooms and other high-grade environments.

Elizabeth Simermeyer, executive vice president for life sciences at Ecolab, said: “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 healthcare 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.”

He said the group believes the strategic fit is “extremely strong” and that the combination offers employees and customers a “highly desirable opportunity”. 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.

Bioquell generated £3.3mln in pre-tax profits on revenues of £29.2mln last year.

 

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