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.
"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."
Indonesia 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.
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 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.
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 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."
Since 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 go-to-market distribution
network. Softex Indonesia generated net sales of approximately
$420 million in 2019.
The transaction is another demonstration of Kimberly-Clark's
commitment to generate improved, sustainable top-line growth and
create long-term shareholder value. Excluding one-time transaction
and integration costs, the acquisition's impact on adjusted
earnings per share in 2020 and 2021 is expected to be immaterial.
The transaction will be financed primarily through incremental debt
and secondarily cash on hand.
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.
About Kimberly-Clark
Kimberly-Clark and its trusted
brands are an indispensable part of life for people in more than
175 countries. Fueled by ingenuity, creativity, and an
understanding of people's most essential needs, we create products
that help individuals experience more of what's important to them.
Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex,
Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus,
Neve, Plenitud, Viva and WypAll, hold the No. 1 or No. 2 share
position in 80 countries. We use sustainable practices that support
a healthy planet, build stronger communities, and ensure our
business thrives for decades to come. To keep up with the latest
news and to learn more about the company's 148-year history of
innovation, visit Kimberly-Clark.com.
About CVC Capital Partners Asia
CVC Capital Partners
has one of the largest and longest-established pan-regional office
networks of any private equity business in Asia and has been active in the region since
1999. CVC's Asia private equity
strategy is focused on control and partnership investments in high
quality businesses. For further information about CVC's
Asia Pacific funds please visit:
www.cvc.com/private-equity/asia.
Certain matters contained in this news release concerning the
outlook, anticipated financial and operating results, expected
benefits and synergies of the anticipated Softex Indonesia
acquisition including the anticipated impact on performance, growth
and adjusted earnings per share, raw material, energy and other
input costs, anticipated currency rates and exchange risks, net
income from equity companies, sources and uses of cash, the
effective tax rate, the anticipated cost savings from the company's
FORCE program, charges and savings from the 2018 Global
Restructuring Program, growth initiatives, product innovations,
contingencies and anticipated transactions of the company
constitute forward-looking statements and are based upon
management's expectations and beliefs concerning future events
impacting the company. In addition, many factors outside our
control, including pandemics (including the ongoing COVID-19
outbreak), epidemics, failure to complete the Softex Indonesia
acquisition or to realize its expected benefits and synergies,
fluctuations in foreign currency exchange rates, the prices and
availability of our raw materials, potential competitive pressures
on selling prices for our products, energy costs, our ability to
maintain key customer relationships, as well as general economic
and political conditions globally and in the markets in which we do
business, could affect the realization of these estimates.
There can be no assurance that these future events will occur
as anticipated or that the company's results will be as estimated.
Forward-looking statements speak only as of the date they were
made, and we undertake no obligation to publicly update them. For a
description of certain factors that could cause the company's
future results to differ from those expressed in any such
forward-looking statements, see Item 1A entitled "Risk Factors" in
each of the company's Quarterly Report on Form 10-Q for the quarter
ended March 31, 2020 and the
company's Annual Report on Form 10-K for the year ended
December 31, 2019.
[KMB-F]
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SOURCE Kimberly-Clark Corporation