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.
Business News Australia