Ethicon Endo-Surgery has announced plans to acquire privately held SterilMed, a leader in the reprocessing and remanufacturing of medical devices. It is a somewhat surprising move, as Ethicon has publicly stated its opposition to reprocessed single-use devices.
SterilMed, based in Maple Grove, Minn., offers products and services including medical device reprocessing, equipment repair and pre-owned equipment sales that help healthcare providers lower their medical device and equipment costs while reducing the amount of waste they generate.
Ethicon says the acquisition "enables expansion in a rapidly growing market segment, while also bringing added scale, scope and experience to an already successful SterilMed team."
"The time is right for Ethicon Endo-Surgery and SterilMed to come together, given the rapid changes occurring in the U.S. healthcare system," said Karen Licitra, company group chairman and worldwide franchise chairman for Ethicon Endo-Surgery, in a prepared statement. "Together, we can continue our focus on developing innovative surgical solutions, while providing healthcare facilities a wider range of flexible product options to save money, reduce medical waste, and maintain quality care for patients."
SterilMed will be managed as part of the Ethicon Endo-Surgery franchise, but will continue to operate as a standalone company and retain the name SterilMed.
"This is an exciting opportunity for both our customers and our company," said Brian Sullivan, SterilMed chairman and CEO. "Becoming part of the Ethicon Endo-Surgery franchise, one of the largest and most respected medical device companies in the world, will have a positive impact on our business, while also expanding our product portfolio."
Dan O'Connor
