Asaleo Care eyes selling brands
The company that manufactures Sorbent, Handee, Purex and Libra is said to be planning to sell some of its divisions and not the entire business. The brands that might go up on sale are Vinda (listed in Hong Kong with Essity Group); Asia Pulp and Paper (based in Jakarta).
The Australian said that those eager to buy the A$377m business as a whole will probably have to launch a takeover.
Britain’s Accrol Papers or Star Tissue and major US competitors such as Georgia Pacific and Proctor and Gamble may take interest. However, Kimberly-Clark and ABC Tissue would likely face objections by the Australian Competition and Consumer Commission.
Last week, Asaleo Care said that the outcome of its strategic review will be announced in the fourth quarter of this year. The company recently announced Sid Takia as new chief executive and Andrew Blew as the next executive general manager of the consumer sales operations.
Lately the tissue maker has been losing money as it deals with its rivals and soaring production costs. Asaleo Care also has a A$309.7m debt pile with hedge funds on the register. In four years, the intellectual property licence of the company will be returned to its Swedish former owner Essity, according to The Australian.
Inside FMCG has contacted Asaleo Care for comment.