Business
Kimberly-Clark to Acquire Softex Indonesia, Significantly Expanding Presence in Southeast Asia
DALLAS and JAKARTA, Indonesia, Sept. 3, 2020 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today announced that it has entered into a definitive
About this update from Kimberly-clark Corporation
[{"type":"text","content":"DALLAS and JAKARTA, Indonesia, Sept. 3, 2020 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today announced that it has entered into a definitive agreement to acquire Softex Indonesia, a leader in the fast-growing Indonesian personal care market, in an all-cash transaction for approximately $1.2 billion from a group of shareholders including CVC Capital Partners Asia Pacific IV.\n\"This acquisition represents a compelling strategic fit and demonstrates our commitment to accelerate growth in developing and emerging markets,\" said Mike Hsu, Chairman and CEO, Kimberly-Clark. \"Moreover, adding Softex Indonesia and its brands to Kimberly-Clark will enhance our company's underlying growth prospects and help us create even more long-term shareholder value.\"\nIndonesia is a large, growing market with attractive future prospects, and the acquisition immediately improves Kimberly-Clark's currently limited position in the country to one with strong market share in key personal care categories across Southeast Asia's largest economy.\nThe diaper market in Indonesia is currently estimated at $1.6 billion, the sixth largest in the world, with approximately five million annual births. Approximately 80 percent of Softex Indonesia sales come from diapers, and it currently holds the number two market share position with the Sweety® and Happy Nappy® brands while continuing to grow its market presence.\nThe remaining Softex Indonesia sales are mostly in the feminine care and adult care categories. In feminine care, the company holds the number three market share position with the Softex® brand. In adult care, it holds the number two market share position with the Confidence® brand.\n\"Softex Indonesia has a strong, growing and profitable business with a portfolio of brands loved by Indonesian consumers,\" said Aaron Powell, President of Kimberly-Clark's Asia-Pacific consumer business. \"This acquisition provides an opportunity for Kimberly-Clark to accelerate our growth in Southeast Asia, and we look forward to combining our strengths in innovation and brand building to expand on Softex Indonesia's continued success.\"\nSince 1976, Softex Indonesia has built a successful personal care business with strong market positions and has consistently delivered double-digit growth. The company has excellent manufacturing capabilities and a strong...