In Sep. 2020, Kimberly-Clark Corporation announced that it has entered into a definitive agreement to acquire Softex Indonesia, a leader in the fast-growing Indonesian personal care market, in an all-cash transaction for approximately $1.2 billion from a group of shareholders including CVC Capital Partners Asia Pacific IV.
In a recent interview with CNBC, Aaron Powel, president of consumer business at Kimberly-Clark’s Asia-Pacific, said it was a very important purchase for the company, the largest deal since 1996.
Kimberly-Clark’s primary focuses are on the ability of accelerate growth and developing emerging markets. Indonesia is a very attractive market, the 6th largest diaper market in the world and one of the fastest growing.
According to Powel, Softex is a tremendous set of capabilities with a strong team, strong supply chain and strong brands. “This is one of those rare acquisitions that fits perfectly from a strategy standpoint and as a very strong asset”.
Indonesia is a large, growing market with attractive future prospects, and the Softex acquisition immediately improves Kimberly-Clark’s currently limited position in the country to one with strong market share in key personal care categories across Southeast Asia’s largest economy. “Softex can be a platform to help us better access some markets [in Asia] beyond just Indonesia”.
“Bottom line we are very excited about how this will help us to drive growth in the future” finishes him.
You can watch the full interview here.