July 20, 2017 / 1:13 AM / a year ago

BRIEF-Ansell announces $100 mln restructuring after condom biz sale

July 20 (Reuters) - Ansell Ltd:

* Will implement a four-point transformation program following a review of business portfolio and agreed divestment of sexual wellness business

* Will make a cash investment over a three-year period of US$70-$100m as part of a significant business transformation

* Investment with an additional US$20-30m in non-cash asset write-downs

* About US$40-50m of above cash investment will enable a cost reduction program

* Program expected to deliver annualized pre-tax savings in excess of US$30m by f’20, with savings of about US$5-7m to be realized in f’18.

* Additional non-cash asset write-downs are expected to arise primarily on closure of smaller, less efficient production lines

* Provisional unaudited f’17 divested EBIT of sexual wellness GBU is US$40m with profit attributable of US$28m

* Continues to anticipate gross proceeds from divestment of US$600m

* Net proceeds from divestment estimated at $529m after deducting estimated tax and transaction costs.

* Retained net proceeds not redeployed in further acquisitions or on share buyback expected to reduce net interest expense at a marginal rate of 2.1 to 2.3pct Source text for Eikon: Further company coverage:

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