Kimberly-Clark Increases Ownership In Brazilian Affiliate to 100%
Dallas, Texas, USA, 27 November 2006 -- Kimberly-Clark Corporation (NYSE: KMB) today announced it has increased its ownership of its Brazilian affiliate, Kimberly-Clark Kenko Industria e Comercio Ltda. (Kenko), from 70% to 100%. Kimberly-Clark acquired the remaining minority interest from Alsercom Comercio De Produtos Texteis e Plasticos Ltda. Terms of the purchase were not disclosed.
Kimberly-Clark Kenko manufactures and markets personal care products in Brazil, holding the number one market position in infant care and a strong number two share in feminine care. Kenko markets diapers and baby wipes under the Huggies and Monica brands and feminine and incontinence care products under the Intimus and Plenitude brands respectively.
"Kimberly-Clark Kenko has an excellent track record, delivering strong double- digit compound annual growth in both sales and operating profit since 2002," said Robert E. Abernathy, group president of K-C's developing and merging markets. "Increasing our ownership in this successful affiliate is consistent with our strategy of investing for growth in the rapidly growing BRICIT countries (Brazil, Russia, India, China, Indonesia and Turkey). We are excited about the potential for further growth and profitability in Brazil, and this purchase puts us in a better position to leverage our scale and capabilities in customer development and product supply across all of our businesses there."
K-C also operates a tissue business in Brazil through a second wholly-owned subsidiary, making bath and facial tissue, paper towels and napkins for both retail and institutional markets. Brands include Kleenex, Scott, Neve, Chifon and Grand Hotel.
To keep up with the latest K-C news and to learn more about the company's 134-year history of innovation, visit www.kimberly-clark.com.