Chinese firms buy condom maker Down Under

Source:Xinhua Published: 2017/5/25 22:33:40

Australian healthcare manufacturer Ansell announced the sale of its condom business on Thursday, in a lucrative deal with two companies from China.

The sale of Ansell's sexual health division, which makes condoms and lubricants, includes some of its international manufacturing sites, as well as offices.

After more than 100 years of Australian ownership, Humanwell Healthcare Group and CITIC Capital Partners bought the sexual health division of the company.

The sale had been in the pipeline for some months, with the A$800 million ($600 million) deal received positively by investors.

Ansell began a review into its condom business, which is the company's oldest and smallest division, in August 2016, as part of a move to allow the business to focus on manufacturing rubber gloves.

Analysts had expected the sale price to be A$500 million to A$1 billion.

"We are delighted with this outcome, following a thorough and competitive process, which realizes significant value for Ansell shareholders," Ansell CEO Magnus Nicolin said.

Following the announcement, Ansell also said it will engage in a share buy-back, recouping 10 percent of its shares over the next 12 months.

Ansell's sexual health division reported pre-tax earning of $38 million in 2016.

Posted in: COMPANIES

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