Ansell buys US glove maker for $96.2m
February 7, 2019
Ansell has agreed to buy Texas-based protective glove manufacturer Ringers Gloves for $US70 million ($96.2 million), continuing the rebalancing of its business following the 2017 sale of its condom-making unit.
ASX-listed Ansell says Ringers, which has $34 million in sales and 39 employees, is a leading provider of gloves to oil and gas, as well as general industry.
Ansell says Ringers, which has $34 million in sales and 39 employees, is a leading provider of gloves to oil and gas, as well as general industry.
“The acquisition of Ringers Gloves is consistent with Ansell’s growth strategy as we look to strengthen our market leadership position across the full range of industrial hand protection needs,” chief executive and managing director Magnus Nicolin said.
“Ansell has a track record of achieving accelerated growth from highly synergistic strategic acquisitions where the acquired business can be rapidly developed through leveraging Ansell’s global sales reach and strength of customer relationships.”
Ansell expects the acquisition, including transaction and integration expenses, to reduce full-year earnings per share by one cent, and increase it by one cent the following year.
Ansell’s 2018 profit trebled to $US484.3 million following the $US345 million sale of its condoms business.
But in December it said it was shutting three production facilities in Mexico and South Korea in a push to save $30 million a year by 2020.
Ansell shares were worth $23.42 before the start of trade on Friday, down from a three-year high of $29.64 in July.
By Stuart Condie
Source: Sydney Morning Herald