Kimberly-Clark to sell personal protective equipment business to Ansell in $640M deal

Kimberly-Clark Corporation, a leading global consumer goods company, has announced that it has entered into an agreement to sell its global Personal Protective Equipment (PPE) business to Ansell Group, a world leader in the production and distribution of PPE solutions, for approximately $640 million in cash. The transaction is expected to close in the second half of 2022, subject to customary closing conditions and regulatory approvals.

The Kimberly-Clark PPE business, which is part of the company's KC Professional segment, includes brands such as KleenGuard, SAFESkin, and Qufu, and offers a range of products including gloves, coveralls, and face masks for various industries, including food processing, healthcare, and manufacturing. The business generated net sales of approximately $350 million in 2021.

Ansell, which is headquartered in Belgium, is a global leader in the production and distribution of PPE solutions, with a presence in more than 100 countries. The company offers a broad range of PPE products, including gloves, condoms, and protective clothing, and serves various industries, including healthcare, industrial, and safety.

The acquisition of Kimberly-Clark's PPE business is expected to strengthen Ansell's position as a leading player in the PPE market and expand its product offerings, particularly in the areas of face masks and coveralls. The transaction is also expected to provide Ansell with increased scale and geographic reach, as well as new customer relationships and distribution channels.

For Kimberly-Clark, the sale of its PPE business is part of a broader strategic focus on its core consumer businesses, which include baby and child care, feminine and incontinence care, and tissue products. The company has been streamlining its portfolio and divesting non-core businesses in recent years, including its healthcare and industrial businesses, to focus on its core consumer brands and growth opportunities.

The transaction is expected to result in a gain of approximately $525 million, which will be recorded as a gain on sale of a discontinued operation in Kimberly-Clark's third quarter 2022 financial results. The proceeds from the sale will be used to pay down debt and for general corporate purposes.

The sale of Kimberly-Clark's PPE business to Ansell is a significant deal in the PPE industry, reflecting the growing demand for PPE products and the consolidation trend in the market. The transaction is expected to create a stronger and more competitive player in the PPE market, with a broader product portfolio and increased scale and reach.