Former Weetabix CEO Places Bid To Purchase Kleenex And Andrews
Giles Turrell, a former chief executive of Weetabix is reportedly working with Goldman Sachs on a possible £1 billion takeover bid for the European tissue division of Kimberly-Clark.
The unit which includes household brand such as Kleenex and Andrews has been put up for sale by the New York-listed company as it seeks to reduce costs and dispose of less profitable businesses, reports Sky News.
In July this year, the consumer goods group lowered its yearly profit forecast the group ‘faced higher commodity costs and a stronger dollar’.
The cost of key raw materials such as pulp should rise to $675 million to $775 million in 2018, Kimberly-Clark said, compared with a previous forecast of $400 million to $550 million.
Besides higher costs, packaged goods companies worldwide have been bruised by stagnant demand from both consumers as well as retailers.
"Our second quarter results reflect a challenging environment, particularly with commodity inflation," Thomas Falk, CEO, Kimberly-Clark said in a statement.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.