Ansell Limited Snaps Up Ringers Gloves For USD 70 Million

ANN

On February 01, 2019, Ansell Limited announced the takeover of specialty impact gloves provider Ringers Gloves at a total consideration of US$70 million, subject to general adjustments to the close. The news sent the Ansell shares down straight to $22.91 in early trade, before recovering to close at $23.340 on 1 February 2019. It reflects a daily price change of -0.342% or -$0.080.It seems that investors are yet to find coherence in the business move.

Safety protection solutions company, Ansell Limited (ASX: ANN) told that Ringer Gloves, headquartered in Houston, Texas, provides specialty impact gloves to oil & gas industry as well as the segments of general industry. The company intends to acquire Ringer Gloves so that its product offering and oil & gas vertical expertise can be aligned with Ansell’s Guardian® solutions and the company could offer the advanced worker protection and productivity for industrial customers around the world. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

Chief Executive Officer and Managing Director at Ansell, Magnus Nicolin stated: “The acquisition of Ringers Gloves is consistent with Ansell’s growth strategy as the company looks to strengthen its market leadership position across the full range of industrial hand protection needs.”

For over 20 years, Ringers Gloves has developed a best-in-class portfolio of impact protection gloves explicitly engineered to serve the unique safety needs of their customers worldwide. The report stated that customer-driven innovation, along with worksite safety assessment support, has enabled Ringers’ gloves to become one of the most recognized impact gloves in the industry.

Mr. Nicolin added “Acquiring Ringers will advance Ansell’s safety protection solutions platform, creating a leading position in the important and growing specialty category of impact protection gloves. Ansell maintains a track record of accelerated growth through acquisition driven strategy to leverage Ansell’s global sales reach and strength of customer relationships.”

Ansell holds a strong Mechanical portfolio with success in recent years driven through the innovation of its HyFlex® brand of cut and general purpose hand protection. In addition to the global leadership of HyFlex in the cut and general purpose segments, Ansell also provides a range of specialty and thermal protection solutions under its ActivArmr® brand.

Moreover, with this acquisition, the company’s position is expected to expand globally in the attractive and growing specialty category, providing a highly complementary suite of industry-leading impact protection products.

Ansell expects the acquisition, to be approximately 1 cent dilutive to EPS in Fiscal 2019 and 1 cent accretive in Fiscal 2020, inclusive of all transaction costs and integration expenses.  The company further stated that closing occurred concurrently with signing and with effect from 1 February 2019.

Ansell Limited’s stock today last traded at a Price to Earnings ratio of 5.140 x with a market capitalization of $3.11 billion. The stock has witnessed a negative performance change of 6.88% over the past 12 months, but since past three months, the stock is trending on the upside. It translates positive daily price change of 1.04% over the past three months and 6.26% just in the last month.


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