Kimberly-Clark to buy Softex Indonesia for US$1.3 billion

The purchase of the maker of diapers and other personal-care products will give the FMCG giant a footprint in a market where it has a "currently limited position".

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Sweety is one of Softex's successful diaper brands.

Kimberly-Clark Corporation announced it will acquire Softex Indonesia in an all-cash transaction for approximately $1.2 billion

Softex Indonesia generated net sales of approximately $420 million in 2019. About 80% of that comes from diapers, including the Sweety and Happy Nappy brands, according to the companies. The rest of its sales comes mainly from the feminine hygiene and adult-care categories, including the Softex and Confidence brands.

The acquisition "immediately improves Kimberly-Clark's currently limited position" in large, growing market with attractive future prospects, the company said in a release.

"Softex Indonesia has a strong, growing and profitable business with a portfolio of brands loved by Indonesian consumers," Aaron Powell, president of Kimberly-Clark's Asia-Pacific consumer business, said in a release. "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."

The transaction is expected to close early in the fourth quarter.

Source:

Campaign Asia