DALLAS, March 12 /CNW/ -- 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 percent 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 markets
these products under the brand names Babysoft, Kleenex, Huggies and Kotex
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 and its well-known global brands are an indispensable part
of life for people in more than 150 countries. Every day, 1.3 billion people
-- nearly a quarter of the world's population -- trust K-C brands and the
solutions they provide to enhance their health, hygiene and well-being. With
brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend,
Kimberly-Clark holds the No. 1 or No. 2 share position in more than 80
countries. To keep up with the latest K-C news and to learn more about the
company's 136-year history of innovation, visit http://www.kimberly-clark.com.
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