Glove and condom maker Ansell Limited will acquire UK-based protective clothing manufacturer Microgard for £59 million ($A113m).
Microgard has sales in more than 75 countries, a manufacturing facility in Xiamen, China and about 750 employees worldwide.
The company has grown rapidly, mainly in Europe, the Middle East and Africa, and in the Asia-Pacific region, with sales of about $US40m during calendar year 2014, Ansell said in a statement today.
Ansell (ANN) chief executive Magnus Nicolin said the acquisition was a critical step in building the company’s body protection operations, as part of its Industrial Global Business unit.
“Together with our current chemical protective glove range, we now have a world-class portfolio of chemical protection solutions, leveraging our strong global footprint,” he said.
Microgard supplies customers in the industrial, chemical, oil and gas and life science sectors and Mr Nicolin said the purchase would complement previous acquisitions that had expanded Ansell’s product range.
Ansell expects the acquisition, including all transaction costs, to be marginally dilutive to earnings per share in fiscal 2015 and to be accretive in fiscal 2016.
The purchase price is equivalent to a multiple of about nine times on trailing 12-months adjusted earnings before interest, tax, depreciation and amortisation, according to the company.
The deal is subject to German antitrust clearance and is expected to complete during the second quarter of the current calendar year.