JAKARTA. Kimberly-Clark Corp, a personal care company listed on the New York Stock Exchange (NYSE), has acquired PT Softex Indonesia for US$1.2 billion or Rp 17.64 trillion.
The two companies have signed a definitive agreement for the transaction.
According to Kimberly-Clark Chair and CEO Mike Hsu, the acquisition reflects the company's commitment to speed up growth in developing markets. "Softex Indonesia will increase Kimberly-Clark's growth prospect and help create a higher long-term stock value," he said in an official statement on Friday (4/9) as quoted from Detik.com.
Indonesia, Mr Hsu said, is a rapidly growing market with an attractive future prospect, and as such the acquisition will expand Kimberly-Clark's position in the country, which is still fairly limited.
The worth of Indonesia's nappy market is currently estimated at US$1.6 billion, the sixth-largest in the world, with around 5 million births per year. 80% of Softex Indonesia's sales comes from nappies, with the segment controlling the country's second-largest market share with the Sweety and Happy Nappy brands. (AM/MS)