Ecolab [NYSE:ECL], a provider of water treatment and infection prevention systems, is exploring the divestiture of hospital supplies assets, according to three sources familiar with the situation.

St. Paul, Minnesota-based Ecolab is working with Goldman Sachs on exploring options for the assets in a process that is at an early stage, the sources said.

Ecolab announced in August that it would create two separate businesses out of its North American healthcare products business, which include Surgical and Infection Prevention. Its global healthcare and life sciences businesses generated USD 387m in second quarter 2023 revenue, nearly unchanged from the 2022 second quarter, according to its earnings report.

“The fact that our healthcare business has not been growing and not making money for quite a very long time is something that I have committed to change,” said CEO Christophe Beck in its second quarter analyst call in August.

Asked if separating the two businesses into stand-alone entities would be a precursor to a sale, the CEO said “I’m not going to comment about the future. It gives us more options, let me put it that way.”

Ecolab’s Surgical business makes hospital drapes that protect surgeons, equipment and patients, while its Infection Prevention business focuses on hospital hygiene and disinfection, according to its website.

It is unclear whether the company is considering divesting both businesses, but the CEO said the Surgical business “is going to be stand-alone with its own divisional structure,” while its infection prevention business “is much more of a traditional Ecolab business,” a potential hint that it could retain the infection business, the sources said.

Potential buyers for the assets include medical products suppliers such as Cardinal Health [NYSE:CAH] and financial sponsors, two of the sources noted.

Ecolab generated USD 14.2bn in 2022 global sales, up from USD 12.7bn in 2021, according to filings. Shares were recently trading at 176.18, giving it a market value of USD 50.2bn.

Ecolab and Goldman Sachs declined to comment.