Kimberly-Clark To Buy Softex Indonesia For $1.2 Bln

(RTTNews) - Kimberly-Clark Corp (KMB) announced that it has agreed to acquire Softex Indonesia in an all-cash transaction for about $1.2 billion from a group of shareholders including CVC Capital Partners Asia Pacific IV.

Kimberly-Clark specified that the Softex Indonesia transaction will be financed primarily through incremental debt and secondarily cash on hand and the transaction is expected to close early in the fourth quarter of 2020.

"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," said Aaron Powell, President of Kimberly-Clark's Asia-Pacific consumer business.

Kimberly-Clark expects the acquisition's impact on adjusted earnings per share in 2020 and 2021 to be immaterial. The diaper market in Indonesia is currently estimated at $1.6 billion, Kimberly-Clark said. Approximately 80 percent of Softex Indonesia sales come from diapers, and the remaining Softex Indonesia sales are mostly in the feminine care and adult care categories.