Ansell has purchased UK-based rubber glove and goggles maker Nitritex for £57 million ($94.2m) as it looks to further expand its offshore footprint.
The glove and condom maker (ANN) snapped up the business, which also produces sterile and non-sterile garments, face masks and accessories, using “currently available” funds at a multiple of approximately seven times EBITDA on a trailing 12 month basis.
Nitritex has a manufacturing facility in Malaysia but the majority of its sales are in Europe and Ansell says the company “has demonstrated consistent double-digit revenue and earnings growth in past years”.
“As a high-growth, high-margin vertical, Life Sciences is a strategically important business to Ansell,” Ansell CEO and managing director Magnus Nicolin said. “The acquisition of Nitritex offers Ansell a unique opportunity to accelerate growth in this segment by expanding our expertise and product range to better meet the needs of our life sciences customers.”
Ansell expects the transaction to be “marginally” EPS accretive in fiscal 2017 and approximately 2 cents earnings per share accretive in fiscal 2018.
The purchase comes as Ansell continues to weigh the sale of its own sexual wellness division, which it confirmed it has received offers on after flagging the potential demerger in August last year.
Ansell shares dropped 1.8 per cent yesterday to $23.70 but made solid ground in 2016, jumping 67 per cent from February’s low.
Analysts remain on the fence about Ansell, with Bloomberg data showing one buy, seven hold and four sell ratings with a consensus price target of $22.81.
By Chris Kohler
Source: The Australian
Trinseo (NYSE: TSE), a specialty material solutions provider, announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its styrene monomer production site in Boehlen, Germany.
H.B. Fuller Company announced that Celeste Mastin, Executive Vice President and Chief Operating Officer, will succeed Jim Owens as H.B. Fuller’s President and Chief Executive Officer, effective December 4, 2022. Upon assuming the role, Mastin will also join the Company’s Board of Directors, replacing Owens, who will be retiring.
New LyondellBasell CEO Peter Vanacker, who joined the company from Neste in May, today named his senior executive team and outlined organizational changes, including creation of a circular and low-carbon solutions business. All changes will be effective 1 October.
