Amcor: Kimberly-Clark to close acquisition

Kimberly-Clark Corp. intends to buy the remaining 45% stake in its Australian unit from Amcor Ltd. In a press release at the beginning of May, Kimberly Clark said it will purchase the stake in Kimberl…

Kimberly-Clark Corp. intends to buy the remaining 45% stake in its Australian unit from Amcor Ltd. In a press release at the beginning of May, Kimberly Clark said it will purchase the stake in Kimberly-Clark Australia Pty. Ltd. at the end of June. Kimberly-Clark expects the acquisition to add one cent a share to earnings in the second half. Analysts surveyed by Thomson Financial/First Call expect the company to earn 89 cents a share and 91 cents a share in the third and fourth quarters, respectively. The company will fund the purchase through a combination of current cash flow and available financial leverage. In mid-2001, Kimberly-Clark increased its ownership in the Australian unit to 55% from 50% and set the acquisition price for the remaining stake with Amcor, its joint venture partner since 1963. “The increase in our ownership of (Kimberly-Clark Australia) bolsters our presence and enhances our growth potential in the Asia-Pacific region,” Kimberly-Clark said. Kimberly-Clark Australia makes tissue, personal care and health care products in Australia and New Zealand.