-French glove producer Comasec S.A. has purchased SSL International P.L.C.'s Marigold industrial glove business and two factories for an estimated $37 million to expand the company's protective goods base.
The company said 1,122 employees will transfer from SSL to Comasec, which will take over production of industrial gloves-including natural rubber, nitrile and butyl rubber-at the plants it acquired from SSL in Kulim, Malaysia and Coimbra, Portugal.
Most of the purchase price will be paid in cash, an SSL spokesman said, and the proceeds from the transaction will be used to reduce the firm's debt.
SSL will retain its Marigold consumer glove unit "because it wants to focus on its consumer brands," the spokesman said. "The consumer part fits well with its other consumer products...primarily because they have common distribution channels."
However, as part of a manufacturing agreement between the two firms, Saint Denis-based Comasec will make Marigold household gloves for SSL, probably at the purchased facilities, he said.
The acquisition expands Comasec's production base and offerings, and is a step in the French protective glove manufacturer's strategy of offering a broader range of services and products, a Comasec spokesman said. It produces supported gloves while the rubber-coated Marigold lines are unsupported, he said.
The Marigold industrial glove business has annual sales of about $58 million, and the acquisition will virtually double Comasec's sales. It also has a well-established commercial network in Europe, North America and Asia, the spokesman said.