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.
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
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