Kimberly-Clark Corp. is reportedly considering the sale of its international tissue division, sparking interest from several major companies, including Royal Golden Eagle Pte, Brazil’s Suzano SA, and Asia Pulp & Paper Co., according to sources familiar with the matter. The sale could be valued at approximately $4 billion, though ongoing deliberations may not result in a final transaction, the sources added.
Representatives from Kimberly-Clark and Royal Golden Eagle have declined to comment, while representatives from Suzano and Asia Pulp & Paper have yet to respond to requests for comment.
It first reported in October that Kimberly-Clark had engaged advisers to evaluate its tissue operations outside North America, a move that could potentially lead to the sale of part or all of the business.
Earlier this year, Kimberly-Clark announced plans to restructure its operations by consolidating its international consumer and professional tissue businesses into a new division called International Family Care & Professional. This division generates annual sales of approximately $3.5 billion and maintains operating margins around 10%.
The Dallas-based company released its 2024 financial results on January 28. In October, Kimberly-Clark reduced its full-year organic sales forecast after reporting weaker-than-expected results. The company now anticipates organic sales growth of 3% to 4%, down from its earlier projection of a mid-single-digit increase.
Since the announcement, Kimberly-Clark’s stock has fallen by 12%, bringing its market value to around $42 billion.
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