Kimberly Clark (NYSE:KMB) will sell its personal protective equipment business to Australia’s Ansell Ltd. (OTCPK:ANSLF) (OTCPK:ANSLY) for $640 million in cash, The Wall Street Journal reported Sunday evening.
The unit designs, markets and sells gloves, eyewear and other apparel with Kimtech and KleenGuard Marche.
For Kimberly-Clark (KMB), the deal is part of its plan to reorganize its operations and overhaul its supply chain in an effort to contain costs and streamline operations.
For Ansell (OTCPK:ANSLF) (OTCPK:ANSLY), the acquisition offers an opportunity to double its personal protective equipment business and create savings by building a larger business.
According to the report, Ansell (OTCPK:ANSLF) (OTCPK:ANSLY) will raise up to A$465 million (~$306 million) to finance the deal and will take on additional debt of $377 million.