Australian glove manufacturer Ansell Ltd announced on Monday its intention to acquire the personal protective equipment division of U.S.-based Kimberly-Clark for $640 million. The acquisition will be finalized in the first quarter of the 2025 financial year.
Ansell outlined its funding plan for the acquisition, which includes a A$400 million fully underwritten institutional placement and a new $377 million bridge facility, as stated in a press release.
Kimberly-Clark’s personal protective equipment division, a subsidiary of the Kleenex tissue maker, specializes in the production and distribution of safety products such as gloves, protective clothing, and safety eyewear.
Ansell’s Managing Director and CEO, Neil Salmon, highlighted the strategic significance of the acquisition, stating,
“With this acquisition, we are enhancing our sales of specialist products designed for clean room applications, while also widening our portfolio of products sold into Scientific verticals.”
As part of the agreement, Ansell and Kimberly-Clark (K-C) will enter into a transitional services arrangement, under which K-C will provide various business support services to Ansell’s customers, suppliers, and employees for a maximum period of 12 months.
By the third full year of ownership, Ansell anticipates achieving approximately $10 million per annum in net cost synergies.
