Ansell gets a handhold in the US
Ansell says the acquisition of BarrierSafe will place it in a leading position in many market sectors in North America.
BarrierSafe is the leading supplier of single-use gloves in the US industrial, life sciences, dental and automotive repair sectors, sectors in which Ansell is not present or does not hold a strong position.
The acquisition of BarrierSafe also allows Ansell to expand into footwear protection.
Ansell completed four acquisitions over the past financial year and acquired Korean glove maker Midas in September 2013, but none was as big as BarrierSafe.
"The acquisition of BarrierSafe ... will further enhance our position as the global leader in hand protection solutions," chief executive Magnus Nicolin said.
The purchase will lift the proportion of Ansell's total revenue generated from North America from 31 per cent to 42 per cent.
"With this acquisition, North America will be our largest region (overtaking Europe, the Middle East and Africa), which we think places us very well for what we expect to be a more favourable manufacturing environment in North America in the coming several years," chief financial officer Neil Salmon said.
The company still had the financial flexibility to pursue smaller acquisitions, but Ansell's major focus over the next year or two would be making a success of the BarrierSafe acquisition, he said.
Ansell expects to gain about $US10 million in annual cost benefits from the BarrierSafe acquisition by the end of the 2015 calendar year, mostly from supply chain savings.
Ansell will fund the acquisition via debt facilities, a share placement and a share purchase plan. It will conduct a $338 million fully underwritten institutional placement and a non-underwritten share purchase plan capped at $100 million.
Ansell shares have been placed in a trading halt while the company conducts a book-build.
Frequently Asked Questions about this Article…
Ansell has acquired BarrierSafe Solutions International for $US615 million, which will enhance its presence in the North American market, particularly in sectors like industrial, life sciences, dental, and automotive repair.
The acquisition is expected to increase the proportion of Ansell's total revenue generated from North America from 31% to 42%, making it the company's largest region.
BarrierSafe is a leading supplier of single-use gloves in the US industrial, life sciences, dental, and automotive repair sectors.
Ansell will fund the acquisition through debt facilities, a $338 million fully underwritten institutional placement, and a non-underwritten share purchase plan capped at $100 million.
Ansell expects to gain about $US10 million in annual cost benefits by the end of 2015, primarily from supply chain savings.
Ansell's major focus over the next year or two will be on making the BarrierSafe acquisition a success, although the company still has the financial flexibility to pursue smaller acquisitions.
With the acquisition of BarrierSafe, North America will become Ansell's largest region, overtaking Europe, the Middle East, and Africa, due to a more favorable manufacturing environment expected in the coming years.
Ansell shares were placed in a trading halt while the company conducted a book-build to fund the acquisition.
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