Ansell to pay $41m to acquire industrial glove maker
ERJ staff report (RPN)
Melbourne, Australia – Ansell Ltd. plans to acquire Midas C. Ltd., Mike McNulty reported for Rubber & Plastics News. Midas is a producer of knitted cut-resistant industrial gloves with expertise in polyurethane coatings and yarn wrapping.
The purchase will cost about $41m (€30m) and should close in the fourth quarter, Ansell said.
Midas, a privately held South Korean manufacturer founded in 1998, operates plants in Janggye, South Korea, and Vietnam. It has about 300 employees with annual sales in the $30m (€22m) range. The company has been a supplier of gloves to Ansell for eight years.
Ansell said it expects to break even on the acquisition in fiscal year 2014.
Both of the acquired glove factories will continue operating under Ansell, a company spokesman said, and the rubber latex glove and condom manufacturer doesn't anticipate trimming the Midas work force.
"Midas has prospered over recent years under a strong management team," he said. While it anticipates most to remain with Ansell, "we expect some natural attrition," he said.
In addition to bringing Midas' manufacturing capabilities in house, Ansell said, the firm's polyurethane and yarn technologies will be important in accelerating the growth of the company's HyFlex brand of products.
"Midas is a well-respected company and its technologies, manufacturing capabilities and product range complement and extend our industrial and specialty markets offering," according to Magnus Nicolin, CEO and managing director for Melbourne-based Ansell.
He said the acquisition represents another step in driving Ansell forward, "fulfilling our growth strategy of accelerating innovation, developing our manufacturing and sourcing capabilities, and building our leadership position in emerging markets."
Midas dips its knitted liners in a polyurethane coating, according to the spokesman, and that process will continue under Ansell, which currently manufactures coated knitted gloves in multiple factories across the globe.
Because Ansell takes a very strategic approach to acquisitions, the spokesman said, "the availability of a leading Asian glove manufacturer such as Midas was an opportunity in line with our growth strategy."
Midas gives the company additional manufacturing capacity, yarn wrapping technology and polyurethane knowledge, "which will be of significant benefit to Ansell," he said.
Ansell's US headquarters is in Iselin, N.J. The company has been expanding its reach via acquisitions in the last year and a half.