Healthcare product manufacturing is often characterised as competitive and susceptible to legal and regulatory changes, multinational competitors and new technologies. Companies try to reduce these risks and maintain margins by investing in their own plant and equipment, and by continuously improving and diversifying their products and customer segments. Specifically, ANN has indicated its near-term focus is to: optimise and increase its product portfolio with a particular emphasis on the COVID-19 pandemic; undertake opportunistic and strategic acquisitions of key product manufacturers; and continue to develop channel partnerships in new international markets [1].
ANN competes directly with other domestic and international personal protection manufacturers that are also trying to attract customers through various pricing, quality and other customer propositions. Some of its larger global competitors are: Top Glove, Hartalega Holdings and Kossan Rubber Industries of Malaysia, which are three of the world’s largest rubber glove manufacturers; and Worldwide Protective Products and Honeywell International of the United States, two of the world’s largest producers of industrial hand and arm protectionary products.
ANN has established a vertically integrated and multinational business model with reliable channels-to-market across a diverse set of countries. It also operates in a range of industries and exports to a number of different countries, giving it the ability to allocate more of its resources to sectors with favourable demand drivers and to distribute more of its products to countries with favourable exchange rates, and vice-versa. Going forward, it should continue to benefit from increased sales and economies of scale through organic growth, expanding its product range and geographic presence, optimising its operations and vertically integrating up the supply chain as well as undertaking complementary and value-accretive acquisitions. Its downside commercial risks could include: a broader economic slowdown, particularly within the medical and manufacturing sectors that could affect the propensity of consumers to purchase discretionary personal protectionary products; erosion of market share and gross margins from other multinational competitors and just in time manufacturers who hold little inventory, especially in the larger and more competitive American, European and Asian markets; loss of a key customer, distributor, supplier or employee; changes to the availability, quality and delivered price of raw materials and third party supplier costs that are unhedged and cannot be passed on to customers through pricing increases; an appreciation of the AUD, which would lower the unhedged value of its exports and any foreign capital it chooses to expatriate back to Australia (equally however, this could lower the AUD-equivalent cost of any manufacturing, packaging and distribution undertaken outside of Australia); greater international product restrictions and regulations that may increase its compliance costs or prevent it from selling certain products in some markets; the development and widespread adoption of an alternative, cost-effective technology or application by a competitor; restricted growth due to a lack of manufacturing capacity or attempting to enter multiple markets without gaining traction in any particular market; and any inheritance of undue liabilities or commercial risks through new product offerings, acquisitions and entrances into new markets.
2002: Ansell was established in 1899 when the Dunlop Pneumatic Tyre Company of the United Kingdom opened an Australian bicycle tyre manufacturing plant and branch, known as the Dunlop Pneumatic Tyre Company of Australasia. The Dunlop Pneumatic Tyre Company of Australasia changed its name to the Dunlop Rubber Company of Australasia in 1906 and to Dunlop Perdriau in 1929 after it merged with the Perdriau Rubber Company. The business was initially involved in the production of bicycle and automobile tyres, but in 1948 it started expanding its product range into footwear and other rubber products and in 1967 changed its name to Dunlop Australia
In 1969, Dunlop Australia acquired the Ansell Rubber Company, a business formed in 1905 by Eric Norman Ansell that primarily manufactured and distributed condoms, balloons, household rubber gloves, surgical gloves and gas masks. In 1980, Dunlop Australia changed its name to Dunlop Olympic after it acquired Olympic Consolidated Industries, a manufacturer of tyres and other industrial products. It was first listed on the Australian Stock Exchange in 1985 (DOL.AX) and changed its name to Pacific Dunlop in 1986 (PDP.AX), reflecting its geographic expansion and in the same year it also established a joint venture called South Pacific Tyres with Goodyear Tire to manufacture and distribute tyres in Australasia
By the mid 1990’s Pacific Dunlop had operations in 20 countries and had diversified into clothing, footwear, batteries, healthcare products and food. It suffered from financial difficulties in the late 1990’s and chose to sell its food and battery businesses as well as its clothing and footwear businesses. Pacific Dunlop turned its focus to healthcare products through its Ansell subsidiary, and in 2002 was renamed Ansell (ANN.AX). At the time ANN had 17 manufacturing plants across Asia Pacific, the Americas and Europe, it operated within the professional healthcare, occupational healthcare and consumer healthcare markets, and it held a 50% shareholding in South Pacific Tyres, a 50% shareholding in Pacific Marine Batteries and a 45% shareholding in BT Equipment
2003: ANN sold its non-core investments in Pacific Marine Batteries and BT Equipment
2006: ANN divested its 50% interest in South Pacific Tyres and expanded its Asian presence by: acquiring 75% of Jissbon, a Chinese condom importer and distributor; and establishing a new trading entity known as Ansell (Shanghai) Commercial Trading Company to sell occupational healthcare products in China
2007: ANN continued to expand its international presence through the acquisitions of two condom manufacturing and distribution businesses, Unimil of Poland and Blowtex of Brazil
2009: ANN acquired the assets of Hawkeye Glove Company in the United States and initiated a restructure of its global manufacturing plants to reduce costs on the back of growing financial pressures during the global financial crises
2012: Two years after restructuring its global operations, ANN undertook a series of acquisitions centred on diversifying its international operations and product range. They included: Sandel Medical Industries, a business involved in the development of disposable staff and patient safety products in the United States; Shanghai Feidun Trading Company, a condom distributor in China; Trelleborg Protective Products, a Swedish manufacturer of chemical protective body suits; a minority interest in Yulex Corporation, a manufacturer of biopolymers based in the United States; and a 10% shareholding in Lakeland Industries, a United States producer of industrial safety clothing and accessories. ANN also launched a partnership with Koreca Industries to distribute its products in Korea
2013: ANN continued its international expansion by acquiring: Comasec SAS, a French manufacturer of specialty gloves; Preferred Surgical Products of the United States, a product and technology company specialising in infection prevention products; and Hércules Equipamentos de Proteção of Brazil, a manufacturer of personal protective equipment. It also opened a new research and development centre in Sri Lanka
2014: ANN acquired two more international manufacturing and distribution companies: Midas, a specialist polyurethane dipping and textile/yarn technology business based in South Korea; and BarrierSafe Solutions International of the United States, a global producer of single-use gloves under its MicroFlex brand as well as protective footwear through its OnGuard business. It also launched a global restructuring program which led to: the divestment of its household glove and cleaning products portion of the Comasec business; the divestment of its Hawkeye military glove manufacturing business; and the closure of its medical goods manufacturing plant in Malaysia, consolidating production at its factories in Sri Lanka and Southern Malaysia
2015: ANN continued its strategy of growth via acquisition by purchasing Hands International, a Sri Lankan based manufacturer and exporter of knitted glove liners, and Microgard, an international manufacturer and distributor of chemical protective clothing headquartered in the United Kingdom. ANN also sold its 10% interest in Lakeland Industries
2016: ANN chose to divest its non-core protective footwear business, OnGuard
2017: ANN acquired Nitritex of the United Kingdom, a manufacturer of sterile and non-sterile consumables including disposable gloves, goggles and face masks. Through the acquisition, it inherited the BioClean brand and a manufacturing plant in Malaysia. It also chose to sell its entire sexual wellness division that produced and sold condoms and lubricants to supermarkets, medical facilities and other customers under its SKYN, Blowtex, LifeStyles, Jissbon, KamaSutra and Manix brands
2019: ANN acquired Ringers Gloves, a provider of specialty impact gloves to the oil & gas and industrial sectors
2020: ANN acquired 50% of Careplus, a Malaysian manufacturer of surgical and latex gloves. The global COVID-19 pandemic forced major nations to temporarily close their borders and restrict people’s movements. This caused major disruptions to supply-chains, employment and consumer demand in almost every sector. ANN was deemed to be an 'essential service' provider and, for the most part, remained operational while many other businesses closed for several weeks