Productive products producer Ansell (ANN) has revealed its third major acquisition in three years with plans to buy Microgard, a UK-based protective clothing manufacturer, for 59 million pounds (A$113 million).
The deal is expected be completed in the June quarter, subject to German competition clearance.
Microgard employs 750 people and had sales of around $US40 million in calendar 2014 across 75 countries, with manufacturing operations based in Xiamen, China.
Ansell said the purchase is a critical step in building the company’s protective clothing business.
“Together with our current chemical protective glove range, we now have a world-class portfolio of chemical protection solutions, leveraging our strong global footprint,” the company said yesterday.
ANN 1Y – Ansell to acquire Microgard
In late 2013 Ansell bought BarrierSafe Solutions International for about $US615 million, bolstering sales of hand protection products in North America.
Earlier that year it had bought a glove maker based in South Korea called Midas for around $US42 million.
It gave Ansell new manufacturing capacity in South Korea and Vietnam Midas gives Ansell capacity polyurethane coatings and yarn wrapping in making cut resistant industrial gloves.
Thanks to Midas, but especially BarrierSafe, Ansett reported a sharp improvement in first half profit in February, with a 20% boost to half year revenues to $US847 million.
The company said first-half profit of $US87.7 million ($113 million at the then exchange rate), was up 34% on the previous first half period.
Chairman Glenn Barnes said at the time the acquisitions were “delivering ahead of expectations” for Ansell.
In particular, Ansell said the acquisition of US firm BarrierSafe is delivering very strong returns in its key medical and ‘single use’ business units.
Ansell shares were up just under 1% to $27.94. They were just over $24 at the time of the interim announcement on February 8.
Ansell shares are up more than 28% so far this year, against an 8% rise in the ASX 200.
