Kimberly-Clark considers selling its international tissue division

According to Bloomberg News, Kimberly-Clark, the US multinational personal care and wellness products company, is considering options for its international tissue business. Sources indicate that this initiative is part of the company’s strategy to focus on more profitable areas.

The company is working with consultants to analyze its tissue operations outside North America, which could result in the sale of part or all the business. In this scenario, a deal could value the unit at approximately US$4 billion, sources say.

Owner of brands such as Kleenex, Scottex, Andrex and WypAll, if the company decides to divest, it could attract interest from private equity firms and competitors in the tissue sector.

In March, the Dallas, U.S.-based company announced that it would reorganize its operations to group its international consumer tissue and professional tissue businesses into a new division called International Family Care & Professional.

This business unit generates around US$3.5 billion in annual sales, with operating margins of 10%, according to a statement at the time. This will be one of three main segments to have its structure revised, along with a new North American division and another group covering its international care staffing operations.

According to sources, deliberations are still in early stages and any potential sale will depend on the outcome of the review. The company could also opt to keep the business and not proceed with negotiations. A Kimberly-Clark representative declined to comment on the matter.