Manufacturing company Ansell ( ANSLF ) (OTC:ANSLY) has agreed to acquire Kimberly-Clark Corp’s personal protective equipment business for $640 million.

The acquisition is expected to enhance Ansell’s sales of specialist products designed for clean room applications.

It is also expected to widen its portfolio of products sold into Scientific verticals which include manufacturing of pharmaceuticals, medical devices and semi-conductors, and laboratories for academic and industrial research.

The acquisition includes Kimtech and KleenGuard brands. Kimtech branded products, principally gloves and protective apparel, are sold into the global Scientific market and KleenGuard branded products, including chemical protective clothing and safety eyewear, are sold into a variety of Industrial end markets. 

Ansell’s Managing Director and CEO Neil Salmon, said, “For many years, we have assessed a combination with KCPPE as one of our most attractive acquisition opportunities and I’m delighted that we have now reached agreement with Kimberly-Clark ( KMB ) that the optimal path forward for this business is under Ansell ( ANSLF ) ownership.”

The acquisition is expected to complete by September 2024, subject to satisfaction of antitrust approval and other customary closing conditions.

Price Action: KMB shares closed lower by 0.15% at $126.31 on Friday.