CITIC Capital in $600m Australian health acquisition
CITIC Capital China has joined a consortium including China’s Humanwell Healthcare to acquire the sexual health division of Australia-listed medical products supplier Ansell for $600 million.
CITIC is investing via its CITIC Capital China Partners III fund, which launched in 2015 with a target of $1.5 billion. Ownership stakes and contributions by consortium partners were not disclosed.
The transaction is subject to regulatory approvals and is expected to complete in September. Shares in Ansell gained about 4% since the announcement and were trading at A$25.12 as of mid-morning May 25.
The business known as Sexual Wellness (SW) includes all of Ansell’s condom, lubricant and devices business and manufacturing sites with the exception of its medical and sexual health joint venture in India. Ansell will also retain ownership of its polyisoprene intellectual property and provide a fully paid-up license to the consortium for use in SW.
“We see Humanwell as a natural home for the business and wish them well with their purchase,” Ansell CEO and managing director Magnus Nicolin said in a statement. “They will be inheriting an outstanding team under the leadership of Jeyan Heper, president of the SW division.”
SW has been producing condoms since 1905 and claims to be Australia’s leading brand. It recorded sales during the 2016 financial year of about $220 million, representing 14% of Ansell’s total sales. Ansell recorded profit of $159 million in 2016, compared to $187.5 million the prior year.
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