Kimberly-Clark tissue business draws interest from potential buyers

KIMBERLY-CLARK’S potential sale of its international tissue business has attracted interest from companies including Royal Golden Eagle, Brazil’s Suzano and Asia Pulp & Paper, according to people familiar with the situation.

The unit could be valued at about US$4 billion, one of the people said, asking not to be identified discussing a private matter. Deliberations are ongoing and may not lead to a transaction, the people said. 

Representatives for Kimberly-Clark and Royal Golden Eagle declined to comment. Representatives for Suzano and Asia Pulp & Paper did not immediately respond to requests for comment. 

Bloomberg reported in October that Kimberly-Clark was working with advisers to review its tissue operations outside of North America, potentially leading to a sale of part or all of the business. 

The Dallas-based company said in March it would reorganise its operations to combine its overseas consumer tissue and professional tissue businesses under a new division called International Family Care & Professional, which generates around US$3.5 billion in annual sales with operating margins of about 10 per cent.

Kimberly-Clark is set to announce its 2024 results on Jan 28.

SEE ALSO

P&G, household-products shares see haven appeal dimmed by lofty valuations

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

In October, the company lowered its full-year organic sales forecast after reporting weaker-than-expected results. Organic sales, which strip out currency volatility and other items, were expected to rise 3 per cent to 4 per cent, down from a previous forecast for a gain in the mid-single digits.

The company’s shares have fallen 12 per cent since then, giving Kimberly-Clark a market value of about US$42 billion. BLOOMBERG