Ansell (ASX: ANN) announced today that it has acquired privately-held Korea-based Midas, a company specializing in industrial-grade protective gloves, for $41.1 million. Ansell, a health and safety protection company itself, sees the glove company as a natural fit.
With "robust growth" over the past 15 years and current annual sales of $30 million, the new purchase will allow Ansell new growth and development opportunities. "Midas is a well-respected company and its technologies, manufacturing capabilities and product range complement and extend our industrial and specialty markets offering," said Ansell CEO and Managing Director Magnus Nicolin in a statement today. "This acquisition represents another step designed to drive Ansell forward, fulfilling our growth strategy of accelerating innovation, developing our manufacturing and sourcing capabilities and building our leadership position in emerging markets."
Midas has already been an Ansell supplier of knitted, cut resistant gloves for eight years, but now Ansell will be able to expand Midas' technology to other products. Its expertise in polyurethane yarn wrapping, as well as its HyFlex® products, will be important additions to its arsenal.
Ansell will officially seal the deal in Q4 2013 and expects to break even on the acquisition in FY 2014.
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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.
