Kimberly-Clark Buys Added Stake
May. 08, 2001
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DALLAS (AP) _ Kimberly-Clark Corp. will purchase an additional 5 percent stake in Kimberly-Clark Australia, its 50-50 joint venture with Amcor Ltd., for about $39 million, company officials said Monday.
Both companies will exchange options to let Kimberly-Clark buy the remaining 45 percent stake for about $355 million within the next four years.
Kimberly-Clark Corp. is a major global manufacturer of tissue, personal care and health care products, and K-C Australia is a leading manufacturer of the same products in Australia and New Zealand.
The joint venture reached $500 million in sales in 2000, an increase of 12 percent over the previous year. The joint venture has six manufacturing facilities and nearly 1,900 employees.
The purchase, which is subject to approval by the Australia Foreign Investment Review Board, is expected to close June 30.
On closing, Kimberly-Clark will begin consolidating K-C Australia's results.