Ansell has purchased Nitritex, a UK-based manufacturer of premium clean-room and healthcare Life Sciences consumables. The deal is relatively small at US$60m and will be near-term earnings accretive.
The transaction adds to income generated outside the US and extends to the Ansell’s expertise across the Life Sciences segment.
You're not a member! Trial today
We’re buyers of Ansell on the current price pullback. Value exists in the $22.50 – $23.50 range.
FY17 revenue $1.65b, EBITDA of $285m, net profit $170m, EPS $1.10 and DPS $0.46 places the stock on 2.5% forward yield.
We expect underlying business growth into FY18 and FY19 of 6% – 9%.
