Kimberly-Clark to Sell Prudhoe Mill to Sweden's SCA and to Purchase Peaudouce Brand from SCA's Molnlycke Subsidiary; Mill Sale Will Complete Required Merger-Related Divestitures Acquisition of Peaudouce Brand Will Make K-C No. 2 Diaper Company in Europe.DALLAS--(BUSINESS WIRE)--Aug. 27, 1996--Kimberly-Clark Corporation today announced it has agreed to sell its tissue mill at Prudhoe, Northumberland, England, and certain consumer tissue businesses in the United Kingdom and Ireland to a unit of Svenska Cellulosa Aktiebolaget Svenska Cellulosa Aktiebolaget (SCA) is a Swedish pulp and paper manufacturer and consumer goods company. It has approximately 50,000 employees and a turnover of approximately 100 billion SEK (10 billion euro). SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal. of Sweden. Separately, Kimberly-Clark is purchasing the Peaudouce diaper brand in France from SCA's subsidiary, Molnlycke AB. Financial terms of the transactions were not disclosed. The European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community required the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the Prudhoe mill Prudhoe Mill is the name given to the SCA Hygiene Products paper mill in Prudhoe, Northumberland, England. The factory is near the River Tyne in the Low Prudhoe Industrial estate. as a condition for approval last January of the merger of Kimberly-Clark's and Scott Paper Company's operations in Europe. Likewise, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Justice Department required the sale of certain assets in the United States, all of which Kimberly-Clark has already sold or reached agreement to sell. "We are receiving good value for the facility and related tissue businesses and are pleased to have all United States and European regulatory issues behind us," said John A. Van Steenberg, president of Kimberly-Clark Europe. "Now we will focus our efforts in the United Kingdom on growing our strong tissue businesses -- Kleenex facial tissue and Andrex bathroom tissue and kitchen towels. "The purchase of the Peaudouce brand will be a key strategic acquisition for Kimberly-Clark, making us the No. 2 diaper company in Europe," Van Steenberg said. "The Peaudouce brand has a strong heritage in France, which we will continue to support. The brand complements our growing Huggies diaper business and provides an even stronger base for our European diaper expansion." Market share for Huggies diapers in France has more than doubled to 13 percent in 1996. Peaudouce diapers, with annual manufacturer sales of more than US$90 million in France, will increase Kimberly-Clark's share of the French diaper market to about 30 percent. As part of the purchase, the companies have settled existing litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. in Europe, and Molnlycke has granted licenses to Kimberly-Clark under certain European diaper patents. The transaction also includes a supply contract for Kimberly-Clark to purchase diapers from Molnlycke's French mill at Linselles. Regarding the merger-related divestitures, Kimberly-Clark will grant SCA a license to use the Kleenex brand name for up to 10 years on consumer bathroom tissue and kitchen towels in the United Kingdom and Ireland. The agreement also includes a perpetually renewable license for Scotties facial tissue in the United Kingdom and Ireland, as well as ownership of the Handy Andies Handy Andy may refer to:
Kimberly-Clark said the transactions are expected to close in September after completion of consultation with affected employee works councils Noun 1. works council - (chiefly Brit) a council representing employer and employees of a plant or business to discuss working conditions etc; also: a committee representing the workers elected to negotiate with management about grievances and wages etc and notification to French regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . The company will use the proceeds from the sale of the Prudhoe mill to purchase the Peaudouce brand, reduce debt and repurchase shares of its common stock. As previously announced, Kimberly-Clark expects total proceeds of $500 million to $600 million from asset sales in 1996. Kimberly-Clark is a leading tissue and personal care products manufacturer. The company is the European market leader in both away- from-home and consumer tissue products with such well-known brands as Kleenex, Scottex and Andrex. Its personal care products include Huggies diapers, Kotex feminine care pads, Pull-Ups training pants and Depend incontinence care products. In 1995, European sales of consumer products accounted for $2.7 billion of Kimberly-Clark's more than $13 billion in revenues. CONTACT: Tina Barry, 214/281-1484 (U.S.) or Sarah Portway,44-1737-736214 (U.K.) OR Investor Relations Investor relations The process by which the corporation communicates with its investors. : Mike Masseth, 214/281-1478 All of Kimberly-Clark Corporation. |
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