Ansell expands with Kimberly-Clark acquisition

Glove and protective clothing manufacturer Ansell is to expand globally with the purchase of Kimberly-Clark’s Personal Protective Equipment business (KCPPE) for $420.5 million (US$640 million) in cash.

KCPPE designs and markets hand, body and eye protection products under the Kimtech and KleenGuard brands to customers scientific and industrial markets – its presence in scientific markets complements Ansell’s medical and industrial focus.

Ansell Managing Director and CEO Neil Salmon said: “For many years, we have assessed a combination with KCPPE as one of our most attractive acquisition opportunities and I’m delighted that we have now reached agreement with K-C that the optimal path forward for this business is under Ansell ownership.

“With this Acquisition we are enhancing our sales of specialist products designed for clean room applications and recorded today under the Life Sciences SBU, while also widening our portfolio of products sold into scientific verticals which include manufacturing of pharmaceuticals, medical devices and semi-conductors, and laboratories for academic and industrial research.”

According to Ansell the acquisition is expected to accelerate delivery of Ansell’s growth strategy, enhance its global position in growing segments and generate economies of scale with a focus on combined supply chain and organisational efficiency.

Managing Director and CEO Neil Salmon said: “For many years, we have assessed a combination with KCPPE as one of our most attractive acquisition opportunities and I’m delighted that we have now reached agreement with K-C that the optimal path forward for this business is under Ansell ownership.

“With this Acquisition we are enhancing our sales of specialist products designed for clean room applications and recorded today under the Life Sciences SBU, while also widening our portfolio of products sold into Scientific verticals which include manufacturing of pharmaceuticals, medical devices and semi-conductors, and laboratories for academic and industrial research.”

The acquisition has limited implications for Australia as Ansell does not manufacture here, thoguh it is headquartered in Melbourne.

Salmon said: “The KimtechTM and KleenGuardTM brands we are acquiring and the experienced KCPPE business team behind them have strong reputations for quality and innovation built over many years of industry leadership.

“…Our existing footprint, in addition to our global organisation and supply chain, creates the opportunity to generate significant synergy value from the acquisition while also enhancing our combined organic growth potential and we are excited about the benefits this will create for Ansell’s customers and shareholders.”

Ansell is expecting net cost synergies of $15.2 million p.a. to be achieved by the third full year of ownership.

Picture: KCPPE