Ansell Expands Further into Industrial Hand Protection with Acquisition of Ringers Gloves

Narrow-moat-rated Ansell acquired Ringers Gloves, a Houston Texas-based leading provider of specialty gloves in the oil, gas, and general industries. The firm generates USD 34 million per year in sales and serves a global customer base. While a relatively tiny business, from a strategic standpoint we believe the acquisition makes sense. It ties in well with the firm’s growth strategy of expanding its leading position across the full range of industrial hand protection. The transaction will create a leading position in the growing impact protection market, and the firm should be able to extract revenue synergies by leveraging its global sales reach. The acquisition should further strengthen the firm’s competitive advantage, and its narrow economic moat which is hinged on its portfolio of strong brands and low-cost manufacturing.