Kimberly-Clark (NYSE:KMB) will sell its personal protective equipment business to Australia’s Ansell Ltd. (OTCPK:ANSLF) (OTCPK:ANSLY) for US$640M in cash, The Wall Street Journal reported Sunday night.
The unit designs, markets and sells gloves, eyewear and other apparel under the Kimtech and KleenGuard brands.
For Kimberly-Clark (KMB), the deal is part of its plan to reorganize its business and overhaul its supply chain in a bid to rein in costs and streamline operations.
For Ansell (OTCPK:ANSLF) (OTCPK:ANSLY), the acquisition provides an opportunity to double down on its personal protective equipment business and create savings through building a larger business.
According to the report, Ansell (OTCPK:ANSLF) (OTCPK:ANSLY) will raise as much as A$465M (~US$306M) to fund the deal and take on US$377M in additional debt.
