By P&PC Staff
By P&PC Staff
Kimberly-Clark Corporation has agreed to acquire Softex Indonesia, a personal care manufacturer, for approximately $1.2 billion.
The all-cash transaction, announced on Sept. 3, will acquire the company from group of shareholders including CVC Capital Partners Asia Pacific IV.
“This acquisition represents a compelling strategic fit and demonstrates our commitment to accelerate growth in developing and emerging markets,” says Mike Hsu, chairman and CEO of Kimberly-Clark, in a statement.
“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.”
The 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 per cent 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.
The 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.
Softex Indonesia generated net sales of approximately $420 million in 2019.
The transaction is expected to close early in the fourth quarter of 2020 and is subject to customary closing conditions.
Morgan Stanley & Co. LLC and Centerview Partners LLC acted as financial advisors, and Gibson Dunn and Crutcher LLP acted as legal counsel to Kimberly-Clark on the transaction.