Adds details on deal, background on Indonesian diaper market
Sept 3 (Reuters) – Kimberly-Clark Corp KMB.N said on Thursday it would buy diaper maker Softex Indonesia for $1.2 billion in cash from a group of shareholders that includes CVC Capital Partners Asia Pacific, as it looks to boost its presence in South East Asia.
The company, which makes Cottonelle toilet paper, Kleenex facial tissue, as well as Huggies diapers, said Softex would help expand its market share in Indonesia, where demand for disposable diapers has swelled in recent years due to a growing middle class.
The diaper market in Indonesia is currently estimated at $1.6 billion, the sixth largest in the world, Kimberly-Clark said.
About 80% of Softex’s $420 million in annual sales comes from diapers, while the rest comprises feminine and adult care products.
Kimberly-Clark has seen sales surge in the United States due to a boom in