Kimberly-Clark To Acquire Remaining Interest In Its South African Affiliate
Dallas, Texas, USA, 12 March 2008 -- Kimberly-Clark Corporation (NYSE: KMB) today announced it has reached an agreement to purchase the remaining stake in its South African subsidiary, Kimberly-Clark of South Africa (K-CSA), from The Lion Match Company (Proprietary) Limited, a wholly-owned subsidiary of FASIC Investment Corporation Limited. Kimberly-Clark currently owns slightly more than 50% of K-CSA.
The transaction, which is subject to approval by the Competition Commission, is expected to close in the second quarter of 2008. K-CSA has operated as a joint venture between Kimberly-Clark and Lion Match, or predecessor companies, since 1955. Terms of the purchase were not disclosed.
"Our increased ownership in this successful affiliate bolsters Kimberly-Clark's presence in the country and enhances our growth potential in sub-equatorial Africa," said Tom Davis, president of Kimberly-Clark Middle East, Eastern Europe, and Africa. "We have an excellent leadership team in place and this transaction gives us greater flexibility in how we execute our strategies for this region."
K-CSA is a leading manufacturer and marketer of tissue, personal care, and business-to-business products and also markets K-C's line of health care products. The company holds strong market share positions in premium bath and facial tissues and in diapers and feminine care products.
The company has delivered, in local currency, high single-digit annual sales growth on average since 2000. Headquartered in Bedfordview, K-CSA operates two manufacturing facilities and includes nearly 800 employees.
Kimberly-Clark sells it well-known global brands to people in more than 150 countries. To keep up with the latest K-C news and to learn more about the company's 136-year history of innovation, visit www.kimberly-clark.com.