K-C Increases Stake in Australian Unit

Kimberly-Clark Corp. increased its stake in its Australian unit, Kimberly-Clark Pty. Ltd. from 50 percent to 55 percent. Amcor had been its joint venture partner since 1963.

Wayne Sanders, Kimberly-Clark's chairman and CEO, said the purchase would increase the company's growth potential in Asia and the Pacific. The Australian unit has six manufacturing facilities, nearly 1,900 employees, and annual sales of about $400 million.

In a separate deal, Amcor said Wednesday it plans to buy the polyethylene container and closure assets of Germany's Schmalbach-Lubeca AG for $1.5 billion. It said the deal would boost its annual sales by $1.8 billion to nearly $5.9 billion.

Amcor operates in Australia, Europe and the Americas.

Amcor's managing director, Russell Jones, said Amcor would finance the German deal with proceeds from the sale of its stake in Kimberly-Clark Australia and by issuing shares and debt.

Schmalbach-Lubeca, the world's largest maker of polyethylene packaging, is based in Ratingen, western Germany.