13 February 2023 – Ansell Limited (ASX:ANN), a global leader in personal protection safety solutions, today announces it has agreed to acquire Careplus Group’s 50 percent shareholding in Careplus (M) Sdn Bhd (Careplus) for a total consideration of RM 37.5 million (approx. US$ 9 million), to be funded from existing cash reserves and subject to customary closing conditions. This acquisition will deliver Ansell a 100 percent shareholding and full operational control.
Ansell acquired a 50 percent shareholding in Careplus in May 2020 to access additional surgical glove capacity to meet high market demand. This investment helped us serve our customers and grow our overall surgical business. The timing of the investment also positioned us to meet growing customer demand for exam gloves at the onset of the COVID-19 pandemic. Ansell is now Careplus’ near sole customer for surgical, life science and exam gloves.
“The breadth of its manufacturing capabilities, latent capacity and devotion of its production to Ansell makes Careplus a strategically important production facility”, said Darryl Nazareth, President Healthcare Global Business Unit at Ansell. “This acquisition of the remaining shares in Careplus allows us to unlock value creation opportunities from new product development, selective insourcing, capacity expansion for key styles, and manufacturing productivity improvements. It also aligns with our objective to secure greater control over our supply chain and production.”
Ansell expects the acquisition to be EPS neutral in FY23. Closing is expected to occur before the end of March 2023.
This announcement was authorised for release by the Board of Directors of Ansell Limited.