Owners of Condom Maker Lifestyles Mull $500 Million Sale

(Bloomberg) -- The owners of Lifestyles Healthcare are weighing a sale of the condom and lubricants maker’s operations outside of China for about $500 million, according to people familiar with the matter.

Citic Capital, which owns a 40% stake in Lifestyles Healthcare, has asked on behalf of a group of shareholders for pitches for the potential disposal, said the people, who asked not to be identified as the discussions are private. The owners, which also include private equity firms Hillhouse Capital and Boyu Capital, intend to keep the condom maker’s business in China after the divestment, the people said.

Lifestyles Healthcare’s history dates back to 1905 when its founder Eric Ansell first started making condoms in Australia, according to its website. The company operates manufacturing facilities in China, India and Thailand and its products are available in more than 40 countries.

Among its brands is Jissbon, a Chinese translation of fictional British spy James Bond that aims to cash in on the popularity of a secret agent who became almost as famous for his sexual exploits as his missions to save the world. Lifestyles Healthcare also owns brands including its namesake Lifestyles, Manix as well as Blowtex and non-latex condom brand SKYN.

Lifestyles Healthcare was created after a consortium of Citic Capital and Humanwell Healthcare Group Co. bought the condom and lubricants business from Sydney-listed Ansell Ltd. for $600 million in 2017. Last year, Hillhouse Capital, Boyu Capital and CareCapital Partners acquired a 40% stake in Lifestyles Healthcare for $200 million, according to an exchange filing by Humanwell at the time. Humanwell still owns a 20% stake in the condom maker.

Considerations are preliminary and the owners could decide to keep the business, the people said. A representative for Citic Capital declined to comment, while a representative for Humanwell said the company currently has no plans to sell its stake. Boyu Capital, CareCapital and Hillhouse representatives couldn’t immediately comment.

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With assistance from Bloomberg