Chinese investors sell international assets of condom maker LifeStyles

The size of the transaction was not disclosed. Mergermarket, AVCJ’s sister title, reported in March – while the sale process was underway – that LifeStyles had an estimated enterprise value of USD 1.1bn and the ex-China operations alone were worth around USD 450m. It added that the China business would likely be prepped for a domestic IPO.

The company, initially the sexual wellness division of Australia’s Ansell, was acquired by Trustar Capital and Chinese drug manufacturer Humanwell Healthcare in 2017 for $600 million, including $230 million in debt. Humanwell took a 60% stake.

Three years later, Hillhouse Capital, Boyu Capital and CareCapital Partners – a specialist dental and consumer health investor – purchased a 40% interest from Humanwell for USD 200m. The three investors took stakes of 18%, 16%, and 6%, respectively. Trustar retained its entire 40% interest, after waiving its right of first refusal on Humanwell’s position.

LifeStyles originated in 1905 when Eric Ansell started making condoms in Australia. It now claims to be a global leader in sexual wellness, selling a range of lubricants, vibrators, and massagers, as well as condoms, in more than 60 countries. The company owns and operates manufacturing facilities in Thailand and India, employing over 1,600 people globally.

Key brands include LifeStyles, Jissbon, Manix, Unimil, Blowtex, and SKYN. Jissbon will be separated from the parent company and remain with the selling shareholders as part of the China business.

Linden, which has raised USD 6.5bn since its founding in 2004, said the LifeStyles acquisition is part of an expansion from traditional healthcare into consumer healthcare. The firm has recruited Laurent Faracci, previously of Reckitt Benckiser Health, where he oversaw brands such as Durex and KY, as CEO of LifeStyles. Ron Fugate, an operating partner at Linden, has become chairman.

“The sexual health category is growing in the company’s primary markets and is increasingly recognised as a core component of healthcare and overall wellbeing. I believe that LifeStyles’ global presence and broad portfolio of brands position the company as a central player in this exciting category,” said Fugate, in a statement.

The mainstreaming of sexual health and wellness is also reflected in Chinese private equity investment activity. Trustar followed up on the LifeStyles deal with the acquisition of Lelo, a Swedish intimate lifestyle brand, while CDH Investments has backed vibrator brand Wow Tech.

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• Topics
• Greater China
• Trade sale
• Consumer
• Healthcare
• North America
• China
• Trustar Capital
• Boyu Capital
• Hillhouse Capital Management
• USA