K-C To Acquire Remaining Interest In Affiliate
Kimberly-Clark Corporation, Dallas, TX, has reached an agreement to purchase the remaining stake in its South African subsidiary, Kimberly-Clark of South Africa, from The Lion Match Company (Proprietary) Limited, a wholly-owned subsidiary of FASIC Investment Corporation Limited. Kimberly-Clark currently owns slightly more than 50% of K-CSA.
The transaction, which is subject to approval by the Competition Commission, is expected to close in the second quarter of 2008. K-CSA has operated as a joint venture between Kimberly-Clark and Lion Match, or predecessor companies, since 1955. Terms of the purchase were not disclosed.
“Our increased ownership in this successful affiliate bolsters K-C’s presence in the country and enhances our growth potential in sub-equatorial Africa," said Tom Davis, president of Kimberly-Clark Middle East, Eastern Europe and Africa. “We have an excellent leadership team in place and this transaction gives us greater flexibility in how we execute our strategies for this region.”