Kimberly-Clark, which already owns 50.1% of Hogla-Kimberly, will pay $165 million for the remaining stake.
Hadera Paper Ltd. (TASE: HAP; OTC: HAIPF) is selling its 49.9% stake in the Hogla-Kimberly diaper company to its partner Kimberly-Clark Corp. (NYSE: KMB) for $165 million. This sum includes $10 million, for Hadera Paper not to compete in the diaper market, for at least 4 years. Hadera Paper said that the sale will yield a profit after tax of $127 million.
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Hadera Paper said that it expects to complete the deal within a very short period of time because Kimberly-Clark already has a controlling stake in the diaper company. The deal is subject to approval by the Israel Antitrust Authority.
Hogla-Kimberly will now be fully owned by Kimberly-Clark Turkey, which is itself fully owned by Kimberly Clark Corp. The deal also includes leasing and services, which will be provided to Hogla-Kimberly by Hadera Paper.
Hadera Paper chairman Yohanan Locker, who led negotiations for the deal, said, “The current agreement is in line with the strategy formed by the company to continue with its core businesses, manufacturing and recycling paper from a stronger and healthier position. We thank Kimberly-Clark for the fruitful partnership between the companies over many years and we are happy that Kimberly chose to continue to invest in the Israeli economy.”
Published by Globes [online], Israel business news – www.globes-online.com