Kimberly-Clark Increases Ownership In Brazilian Affiliate To 100 Percent
DALLAS, Nov. 27, 2006 – Kimberly-Clark Corporation (NYSE: KMB) today announced it has increased its ownership of its Brazilian affiliate, Kimberly-Clark Kenko Industria e Comercio Ltda. (Kenko), from 70 percent to 100 percent. Kimberly-Clark acquired the remaining minority interest from Alsercom Comercio De Produtos Texteis e Plasticos Ltda. Terms of the purchase were not disclosed.
Kimberly-Clark Kenko manufactures and markets personal care products in Brazil, holding the number one market position in infant care and a strong number two share in feminine care. Kenko markets diapers and baby wipes under the Huggies and Monica brands and feminine and incontinence care products under the Intimus and Plenitude brands respectively.
“Kimberly-Clark Kenko has an excellent track record, delivering strong double- digit compound annual growth in both sales and operating profit since 2002,” said Robert E. Abernathy, group president of K-C’s developing and merging markets. “Increasing our ownership in this successful affiliate is consistent with our strategy of investing for growth in the rapidly growing BRICIT countries (Brazil, Russia, India, China, Indonesia and Turkey). We are excited about the potential for further growth and profitability in Brazil, and this purchase puts us in a better position to leverage our scale and capabilities in customer development and product supply across all of our businesses there.”
K-C also operates a tissue business in Brazil through a second wholly-owned subsidiary, making bath and facial tissue, paper towels and napkins for both retail and institutional markets. Brands include Kleenex, Scott, Neve, Chifon and Grand Hotel.
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 No. 1 or No. 2 share positions in more than 80 countries. To keep up with the latest K-C news and to learn more about the company’s 134-year history of innovation, visit www.kimberly-clark.com.
Certain matters contained in this news release concerning the business outlook, including future growth opportunities and synergies, anticipated financial and operating results, strategies, contingencies and anticipated transactions of the company constitute forward-looking statements and are based upon management’s expectations and beliefs concerning future events impacting the company. There can be no assurance that these future events will occur as anticipated or that the company’s results will be as estimated. For a description of certain factors that could cause the company’s future results to differ materially from those expressed in any such forward-looking statements, see Item 1A of the company’s Annual Report on Form 10-K for the year ended December 31, 2005 entitled “Risk Factors.”
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