Tuesday, October 1, 2024

Kimberly-Clark explores sale of its international tissue business, Bloomberg News reports

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(Reuters) – Kimberly-Clark is exploring the sale of its international tissue business as part of its strategy to focus on more profitable parts of the company, Bloomberg News reported on Monday, citing people familiar with the matter.

A potential deal could value the business at about $4 billion, the report added.

The Kleenex tissue maker is working with advisers to review its tissue operations outside North America, which could lead to a sale of a part or all of the business, as per the report.

The company declined to comment when contacted by Reuters.

Deliberations are in the early stages and any potential sale of the business will depend on the eventual outcome of the review, according to the report.

Shares of Kimberly-Clark, which also makes personal care products like diapers, were up about 17% so far this year.

In March, the company said it would reorganize into three business units in an attempt to simplify operations and cut costs, adding that it would incur about $1.5 billion in related costs over the period of next three years.

In October 2022, Brazilian pulpmaker Suzano SA agreed to buy the Kimberly-Clark’s tissue operations in the country.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber)

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