Rubber products maker Ansell said on Thursday it would sell its condom business to a Chinese consortium for US$600 million, leading the Australian company to launch a US$265 million on-market share buyback.
China’s Humanwell Healthcare Group Co Ltd and Citic Capital China Partners had bought the division, which also includes a lubricant and devices business, Ansell said.
“We are delighted with this outcome, following a thorough and competitive process, which realizes significant value for Ansell shareholders,” Ansell Chief Executive Magnus Nicolin said.
Ansell in February said several parties had expressed interest in the division, which sent its shares soaring at the time.
The company expects to receive net after-tax proceeds of US$529 million from the sale. The share buyback announced on Thursday represents 10% of shares on issue.
Chairman Glenn Barnes said Ansell, whose main business was making gloves for factories and medical applications, would also consider making value accretive acquisitions that could generate attractive returns.