Australian healthcare manufacturer Ansell announced the sale of its condom business on Thursday, in a lucrative deal with Chinese buyers.
The sale of Ansell's sexual health division, which makes condoms and lubricants, includes some of its international manufacturing sites, as well as offices.
After more than 100 years of Australian ownership, Humanwell Healthcare Group and CITIC Capital Partners bought the sexual health division of the company.
The sale had been in the pipeline for some months now, with the 800 million Australian dollar (600 U.S. million) deal delighting investors, as shares surged 4 percent at 12:00 local time AEST.
Ansell began a review into its condom business, which is the company's oldest and smallest division, in August 2016, as part of a move to allow the business to focus on manufacturing rubber gloves.
Analysts had expected the sale to reach to fall somewhere within the range of 500 million to 1 billion Australian dollars.
"We are delighted with this outcome, following a thorough and competitive process, which realizes significant value for Ansell shareholders," Ansell CEO Magnus Nicolin said.
Following the announcement, Ansell also said it will engage in a share buy-back scheme, recouping 10 percent, or 356 million Australian dollars worth of its shares over the next 12 months.