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UPDATE 1-Australia's Ansell to send condom HQ offshore, shut US gloves unit
June 30, 2014 / 9:11 AM / 3 years ago

UPDATE 1-Australia's Ansell to send condom HQ offshore, shut US gloves unit

* Relocating condom executive to Brussels

* Simplifying business following acquisitions (Adds new location of condom HQ, reason for restructuring)

SYDNEY, June 30 (Reuters) - Australia’s Ansell Ltd, the world’s biggest condoms and gloves maker, plans to relocate its condom headquarters offshore, exit a U.S. military gloves operation and shut a plant in Malaysia, in a restructuring that will cost $124.7 million and 250 jobs.

The Melbourne-based company will also eliminate 30 “older non-core brands”, 100 products and 20 legal entities by the end of the financial year to June 2015, it said in a statement to the Australian Securities Exchange on Monday.

The condom unit will “remain unchanged with the exception of a leadership transition over the next few months that will relocate the Sexual Wellness global headquarters out of Australia to a location closer to core international growth markets,” Ansell said.

In a separate statement, the company said the condom unit’s headquarters would move to Brussels. It did not give a breakdown of where it would cut the 250 jobs.

Ansell is simplifying its business following several acquisitions in recent years such as that of U.S. gloves maker BarrierSafe Solutions International for about $615 million in 2013 - a purchase intended to expand its position in the U.S. hand protection market.

On Monday, Ansell said the cost of restructuring will not affect dividends for the 2013-14 financial year, and that the restructuring will bring annual savings of up to $22 million in 2015-16 when complete.

Ansell shares closed down 0.9 percent at A$19.83 ($18.64) before the company announced the restructuring, matching the decline in the benchmark stock index. ($1 = 1.0636 Australian Dollars) (Reporting by Byron Kaye; Editing by Christopher Cushing)

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