Ansell acquires Barriersafe Solutions International for $ 615 m
Friday, 24 January 2014 00:25
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Ansell Ltd., a global leader in protection solutions, recently announced that it has acquired BarrierSafe Solutions International, a leading North American provider of single-use gloves, for a total consideration of approximately US$615 million.
The deal is subject to certain adjustments, from Odyssey Investment Partners and others. Founded in 1987, BarrierSafe has sales of approximately US$290 million per annum. With the Acquisition, Ansell further expands its position in the hand protection market in North America and continues to implement its strategy to create shareholder value through organic and acquisition driven growth.
The acquisition and associated transaction costs were funded by a committed debt facility of US$300 m as well as the raising of new equity through a fully-underwritten private placement of A$338 m (US$308 m) and a portion of a non-underwritten share purchase plan (SPP) of up to A$100 m (US$91 m) to all eligible shareholders in Australia and New Zealand.
“The acquisition of BarrierSafe is a rare opportunity to strengthen the position of Ansell in the core North American single-use glove market and will further enhance our position as the global leader in hand protection solutions,” said Magnus Nicolin, Chief Executive Officer and Managing Director at Ansell.
“The acquisition represents another strategic move in fulfilling our growth objectives in target industry verticals and is consistent with our disciplined approach to mergers and acquisitions, with an EBITDA multiple similar to that paid by Ansell in other recent transactions. I am also delighted to confirm that BarrierSafe CEO Michael Mattos and COO/CFO Joseph Kubicek have become part of the Ansell leadership team, and I expect BarrierSafe senior management to play important roles in the success of the combined business going forward.”
BarrierSafe is the leading North American provider of single-use gloves to core Ansell growth verticals like Industrial, Auto Aftermarket, Emergency Medical Services, Dental and Life Sciences, all under the flagship brand Microflex®. BarrierSafe also manufactures and distributes a market leading range of Onguard™ branded protective footwear. BarrierSafe has approximately 250 employees in locations across North America and Southeast Asia.
Ansell expects to achieve significant cost synergies primarily from supply chain savings as well as increased revenue opportunities from cross-selling and vertical development.
UBS is acting as the sole financial adviser to Ansell, and Drinker Biddle & Reath LLP and Baker & McKenzie are its legal advisers.
Ansell is a world leader in providing superior health and safety protection solutions that enhance human well-being. With operations in North America, Latin America/Caribbean, EMEA and Asia, Ansell employs more than 13,000 people worldwide and holds leading positions in the personal protective equipment and medical gloves market, as well as in the sexual health and well-being category worldwide. Ansell operates in four main business segments: Medical Solutions, Industrial Solutions, Specialty Markets and Sexual Wellness.
Ansell commenced its Sri Lankan operation in 1989 at Biyagama Export Processing Zone with an investment exceeding US$ 100 million to date. At present the company operates on a land area of 31 acres and a build-up area of 527,000 square feet.
The company has a workforce of 2,000 direct employees at its production facility of which approximately 75% are permanent staff. Ansell Lanka also provides indirect employment opportunities to more than 10,000 Sri Lankan rubber tappers and others employed in the rubber industry.
