Ansell Limited, Australian manufacturer of protective and medical gloves and condoms, has announced a new organisational structure for their company that allows for a more efficient business, better leverages an increase in scale and strengthens leadership.
According to the media release by Ansell, the new organisation and associated restructuring will allow the company to add accumulated experience and strength gained from recent acquisitions, including BarrierSafe Solutions International (BSSI), and help it continue on its successful path initiated in the past few years.
The changes will see Ansell integrate BSSI into a revised Global Business Unit (GBU) Structure, with four GBUs that have been reorganised to focus on prioritised growth verticals while realising cost synergies from the BSSI acquisition.
It also includes announcing a restructuring program that delivers attractive cash pay-backs through accelerating delivery of the company’s supply chain efficiency strategy, while realigning resources to the new GBU structure and prioritised growth verticals. The changes will result in certain one-off and largely non-cash restructuring charges.
The adjustments will further accelerate the company’s brand, product and legal entity rationalisation strategy, targeting the elimination of 30 older non-core brands, 100 products and 20 legal entities by the end of F’15, and will see the company announce a revised ERP Implementation strategy designed to achieve higher returns at lower cost from future investments.
“Our global organisation structure and our strategic focus, in place for the last four years, has delivered excellent results, with sales increasing 55% and EBIT 60%, while creating strong returns to shareholders. We are also very pleased with the value now being realised from our recent acquisitions including BSSI,” Magnus Nicolin, Managing Director and CEO at Ansell, said on the impending changes.
“The changes announced today mark the beginning of the next phase of our growth journey. Our sharpened focus on prioritised verticals, which are pivotal to our future growth, reflects our continued commitment to identifying and developing innovative solutions to meet our customers’ very specific and often different needs and achieving attractive organic growth rates in our focus markets. These changes will also accelerate delivery against our strategy to improve manufacturing productivity, invest in efficient back-office processes and realise additional synergy benefits from recent acquisitions,” Mr Nicolin said.
For detailed information on Ansell’s restructuring program, click here.