Ansell (ASX:ANN) has ticked off a fully underwritten institutional placement and raised A$400 million (US$263 million) with the issue of 17.8 million new shares at A$22.45 per share.
The funds will be used to complete the recently announced acquisition whereby the safety solutions company entered into a binding agreement to acquire 100% of Kimberly-Clark’s Personal Protective Equipment business (KCPPE) from Kimberly-Clark Corporation for US$640 million (A$969 million).
KCPPE is renowned globally for its innovative safety products, including gloves, protective apparel and safety eyewear.
“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.” Ansells Managing Director and CEO Neil Salmon said:
“Our existing footprint, in addition to our global organisation 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.”
Settlement of the new shares is expected for Thursday, April 11, 2024, with issuance and commencement of trading on the ASX expected on Friday, April 12, 2024.
ANN has a market cap of A$3.197 billion.
ANN shares are up 6.6%, last traded at $25.47.