Ansell slips on US glove maker for $96.2 million
1 February 2019, Written by Business News Australia
Following the sale of its condom business in 2017 Ansell (ASX: ANN) has been focusing on its protective gear unit as its priority.
Continuing this trend, the Australian company has acquired a US protective glove manufacturer Ringers Gloves for US$70 million ($96.2 million).
Ringers Gloves has a history of manufacturing gloves to oil & gas and general industry segments, and last year made $34 million in sales.
Ansell says the acquisition will add to the company's already strong portfolio of gloves businesses including its HyFlex brand and thermal protection brand ActivArmr.
"This acquisition provides a highly complementary suite of industry leading impact protection products, expanding Ansell's position in this attractive and growing specialty category," says Ansell in its ASX statement.
Ansell chief executive officer and managing director Magnus Nicolin says the purchase will enable Ansell to become the market leader for a variety of protective needs.
"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," says Nicolin.
The company expects the acquisition to be approximately 1 cent dilutive to its earnings per share in FY19 and 1 cent accretive in FY20.
Shares in Ansell are up 0.68 per cent to $23.58 per share at 10.13am AEDT.
Business News Australia
Author: Business News Australia