Kimberly-Clark presently owns approximately 3 percent of S-K Corporation, with the balance held by private and employee shareholders. Kimberly-Clark also owns 67 percent of Taiwan Scott, the leading local manufacturer of tissue products in Taiwan. With the addition of the S-K business, Kimberly-Clark will be the largest manufacturer of consumer packaged goods in Taiwan with annual sales of more than US$200 million.
"Our acquisition of S-K Corporation demonstrates our faith in the growth opportunities in the Asia-Pacific region, and is testament to the skill with which the management of S-K Corporation has built a healthy and profitable business over the past 25 years," said Wayne R. Sanders, chairman and chief executive officer of Kimberly-Clark. "The purchase gives us the opportunity not only to build our leading global brands in the affluent Taiwan market, but also to work synergistically with our existing businesses in Taiwan and elsewhere in Asia-Pacific."
C. H. Chen, Chairman of S-K Corporation and representing all shareholders, said, "We have had a stable and mutually beneficial relationship with Kimberly-Clark since the original joint venture and licensing agreement began in 1975. This purchase by Kimberly-Clark will provide good value for the shareholders, and the business will benefit from Kimberly-Clark's technology, systems and international distribution strength."
The transaction is scheduled for completion by the end of June, following the execution of a definitive agreement and approval by the boards of directors of both companies. It is also subject to certain conditions, including regulatory clearances.
S-K Corporation employs 887 people and operates two manufacturing plants - - one at Chungli, west of Taipei, and the other at Neihu, a suburb of Taipei.
With more than $13 billion in sales in 1999, Kimberly-Clark Corporation is a leading global manufacturer of tissue, personal care and health care products. The company's global brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott, Kimberly-Clark, Safeskin, Tecnol, Kimwipes and WypAll.
Other brands well known outside the U.S. include Andrex, Scottex, Page, Popee and Kimbies. Kimberly-Clark also is a major producer of premium business, correspondence and technical papers. The company has manufacturing operations in 40 countries and sells its products in more than 150 countries.
Certain matters contained in this news release concerning the business outlook, anticipated financial and operating results, strategies, contingencies and transactions of Kimberly-Clark and S-K Corporation constitute forward-looking statements and are based upon expectations and beliefs of the management of Kimberly-Clark and S-K Corporation concerning future events impacting Kimberly-Clark and S-K Corporation.
