Ansell has entered into a binding agreement to acquire 100% of the assets that constitute Kimberly-Clark’s Personal Protective Equipment business (KCPPE) for $640 million.

The acquisition is expected to complete by September 2024, subject to satisfaction of antitrust approval and other customary closing conditions.

Commenting on the acquisition, managing director and CEO Neil Salmon says: “For many years, we have assessed a combination with KCPPE as one of our most attractive acquisition opportunities and I’m delighted that we have now reached agreement with Kimberly-Clark that the optimal path forward for this business is under Ansell ownership. With this acquisition we are enhancing our sales of specialist products designed for clean room applications and recorded today under the Life Sciences SBU, while also widening our portfolio of products sold into Scientific verticals which include manufacturing of pharmaceuticals, medical devices and semi-conductors, and laboratories for academic and industrial research.

“The Kimtech and KleenGuard brands we are acquiring and the experienced KCPPE business team behind them have strong reputations for quality and innovation built over many years of industry leadership. These are similar qualities to Ansell, however KCPPE has particular areas of strength across product portfolio, geographic position and sustainability differentiation that will meaningfully enhance Ansell’s overall position in the marketplace and customer differentiation.

“Our existing footprint, in addition to our global organization and supply chain, creates the opportunity to generate significant synergy value from the acquisition while also enhancing our combined organic growth potential and we are excited about the benefits this will create for Ansell’s customers and shareholders.”

KCPPE is a global personal protective equipment business, designing, marketing and selling innovative and differentiated safety products including gloves, protective apparel and safety eyewear.

KCPPE products are marketed and sold under the Kimtech and KleenGuard brands. Kimtech branded products, principally gloves and protective apparel, are sold into the attractive global Scientific market, where KCPPE is a trusted supplier in the fast-growing cleanroom sub-segment, supported by a technical sales force with strong end user relationships. KleenGuard branded products, including chemical protective clothing and safety eyewear, are sold into a variety of Industrial end markets. KCPPE’s customer base is global, with the majority of sales in North America.

In addition to its portfolio of differentiated products, KCPPE offers value-enhancing services to its customers, including The RightCycle Program PPE end-of-life recycling service which helps customers further their sustainability goals.

Ansell will enter a transitional services agreement with Kimberly-Clark, which includes support in transitioning customers, suppliers and employees to Ansell as well as providing various business support services for a period of up to 12 months.