CITIC Capital, Humanwell partner in $600m condom deal

The Chinese pair have acquired the sexual wellness unit of Australian healthcare company Ansell and plans to expand the company in emerging markets.

Hong Kong-based private equity firm CITIC Capital Partners and Shanghai-listed company Humanwell Healthcare have teamed up to acquire the sexual wellness business of Australian company Ansell for A$800 million ($600 million; €534 million), according to a statement.

The deal also includes some offices and manufacturing sites in Bangalore and São Paulo.

Ansell, the Richmond-based maker of gloves and surgical masks, put its sexual wellness division up for sale in August last year with Goldman Sachs running the process.

The division manufactures and markets 18 global, regional, and local brands of condoms including Skyn and KamaSutra, as well as other personal products. It recorded A$38 million in EBITDA for fiscal 2016 and $190 million in revenue. Ansell’s other business units – industrial, medical and single use – will remain with the company.

CITIC and Humanwell’s investment will be used in part to buy back 10 percent or $265 million of the company’s shares, as well as to expand its business in China and other emerging markets.

CITIC Capital Partners is making the investment through CITIC Capital China Partners III, its latest China buyout vehicle which has so far raised $1.5 billion towards a $2 billion target. Fund III focuses on TMT, healthcare, education and financial services as well as cross-border deals in the US, Europe and Australia.

Humanwell, a Wuhan-based healthcare company, produces and sells anaesthetics, fertility drugs, herbal medicines and anti-infection drugs across 10 countries.

Nomura was the financial advisor to CITIC and Humanwell Healthcare.

The transaction is expected to be completed by September.