Ansell (ASX:ANN) has launched a significant transformational program, following the sale of its sexual wellness business.
The protection solution business will make a cash investment of US$70-$100million over three-years, with an additional US$20-$30 million in non-cash write downs.
Ansell says the program aims to improve the return on capital, with the business having a sharper focus on selling to industrial and healthcare markets.
The company says about US$40-$50 million of the cash investment will go towards a cost reduction program, which will deliver pre-savings of over US$30 million by 2020 and savings of US$5-$7 million in 2018.
Shares in Ansell (ASX:ANN) are trading 1.62 per cent higher to $22.53.