07.15.22
CMPC has reportedly indicated it is no longer interested in purchasing Kimberly-Clark’s Latin American assets as the sale moved into the second stage. The Chilean company company felt the price of the unit was too high.
Reports of K-C selling its tissue paper assets in Brazil and Latin America first started surfacing in May. Market estimated suggested the business valued somewhere between $800 million and $1 billion. In addition to CMPC, potential buyers inlucded pulp maker Suzan, Nine Dragons Paper, Oji Holdings and J&F Investimentos.
Even as it explores the sale of this unit, the diaper maker continues to invest in its hygiene- and wipes-related assets in Brazil where it intends to create an innovation hub and export center for the Latin American region. The company has been investing in capacity expansion equipment in Brazil since 2020. Efforts have included the installation of new technologies to increase diaper and wipe production as well as the construction of an increasingly local raw material supply network.
Brazil is one of Kimberly-Clark’s 10 largest operations worldwide, with 4000 employees. In the first quarter, sales of the Brazilian operation grew by double digits. Globally, the sales of the U.S-based multinational grew 7% year over year, to $5.09 billion, but operating income fell 10%, the same contraction as net income, which stood at $535 million.
Reports of K-C selling its tissue paper assets in Brazil and Latin America first started surfacing in May. Market estimated suggested the business valued somewhere between $800 million and $1 billion. In addition to CMPC, potential buyers inlucded pulp maker Suzan, Nine Dragons Paper, Oji Holdings and J&F Investimentos.
Even as it explores the sale of this unit, the diaper maker continues to invest in its hygiene- and wipes-related assets in Brazil where it intends to create an innovation hub and export center for the Latin American region. The company has been investing in capacity expansion equipment in Brazil since 2020. Efforts have included the installation of new technologies to increase diaper and wipe production as well as the construction of an increasingly local raw material supply network.
Brazil is one of Kimberly-Clark’s 10 largest operations worldwide, with 4000 employees. In the first quarter, sales of the Brazilian operation grew by double digits. Globally, the sales of the U.S-based multinational grew 7% year over year, to $5.09 billion, but operating income fell 10%, the same contraction as net income, which stood at $535 million.
