Hillhouse, Boyu, CareCapital back condom maker

Originally the sexual wellness division of Australia’s Ansell, LifeStyles was acquired by CITIC Capital and Chinese drug manufacturer Humanwell Healthcare in 2017 for $600 million, including $230 million in debt. Humanwell took a 60% stake. The company said in a filing it would reduce its position to 20%.

Hillhouse and Boyu are paying $90 million and $80 million, respectively, for stakes of 18% and 16%. CareCapital will get the remaining 6% for $30 million. CITIC is retaining its full 40% interest, having waived its right of first refusal on the stake being sold by Humanwell.

LifeStyles dates back to 1905 when Eric Ansell started making condoms in Australia. It is now the world’s second-largest condom manufacturer and claims to be a global leader in sexual wellness, offering a range of lubricants, vibrators, and massagers, as well as condoms. Brands include LifeStyles, Jissbon, Manix, Unimil, Blowtex, and SKYN.

The company generated RMB1.9 billion ($287 million) in operating income and RMB46.3 million in net profit last year. For the first nine months of 2020, operating income and net profit were RMB1.4 billion and RMB58.8 million, respectively.

Sexual wellness investments are a growing consumer niche, especially where there is a China expansion opportunity. CITIC followed up on the LifeStyles deal with the acquisition of Lelo, a Swedish intimate lifestyle brand, while CDH Investments backed vibrator brand Wow Tech earlier this year.

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• Topics
• Greater China
• Consumer
• Expansion
• China
• Asia
• Growth capital
• CITIC Capital
• Hillhouse Capital Management
• Boyu Capital