ANSELL COMPLETES SALE OF ITS ICONIC CONDOM BUSINESS

ANSELL COMPLETES SALE OF ITS ICONIC CONDOM BUSINESS

ANSELL (ASX: ANN) has completed the sale of its 'sexual wellness' business to a Chinese consortium for $754 million.

The company's sexual wellness unit includes all condoms, lubricants, devices business and manufacturing sites and it has been offloaded to Human Healthcare Group and CITIC Capital China Partners.

Ansell and the Chinese consortium anticipated the need for additional time to conclude the sale of Ansell's Brazilian condom business, Blowtex due to some pre-completion conditions.

Ansell has also agreed $12.5 million of the sale procedures would remain in escrow until Brazilian completion conditions are satisfied, which is expected to occur by end of the month.

The sale was announced in August 2016 as part of a portfolio review which also includes a $265 million share buy-back.

The sale closes a chapter on Australia's manufacturing history dating back to the Great Depression when entrepreneur Norman Ansell struck out on his own in 1929 from the Dunlop Company of Australasia.

Norman Ansell started making condoms and moved into gas masks, weather balloons and latex gloves.

Ansell also revealed they have reached an agreement with Raymond Limited, its joint venture partner in JK Ansell India to restructure the deal.

The agreement means Raymond will take full ownership of the JK condom business including the Kama Sutra brand, while Ansell will have full ownership of the Indian medical business which sells medical gloves and hospital safety solutions.

Ansell expects to net after-tax cash proceeds of $664.5 million and a post-tax profit of $458.4 million which will be recorded in the FY18 accounts.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Facing the latest impacts of cyber-crime: cyber insurance premiums increase for businesses
Partner Content
As Australian businesses are forced to adapt to a new normal yet again, a different typ...
Aon
Advertisement

Related Stories

City of Melbourne to consider introducing vaccine passport

City of Melbourne to consider introducing vaccine passport

City of Melbourne councillors will vote next week on the introducti...

Wesfarmers ups API takeover bid to $764m, to conduct due diligence

Wesfarmers ups API takeover bid to $764m, to conduct due diligence

Just under two months after rejecting a takeover bid from Wesfarmer...

Myer roars back with $46m profit as online sales continue to surge

Myer roars back with $46m profit as online sales continue to surge

Department store group Myer Holdings has defied ongoing business di...

Domain to acquire property data business in deal worth up to $159m

Domain to acquire property data business in deal worth up to $159m

Property portal Domain (ASX: DHG) today announced it has entered in...