Kimberly-Clark eyes sale of Yuhan’s toilet paper business: MAET

Kimberly-Clark eyes sale of Yuhan’s toilet paper business: MAET

Kimberly-Clark, a global leader in personal care products, is reportedly considering the sale of its toilet paper business in South Korea, marking a significant move in the tissue and hygiene market. The company, which has been operating in Korea since 1970, is exploring a split sale of its Gimcheon plant, a key asset in Yuhan Kimberly's toilet paper division. This strategic decision comes amidst a growing interest in the stable and lucrative toilet paper market.

The Gimcheon plant, spanning 5,950 square meters, is equipped to produce approximately 36,000 tons of toilet paper annually. Kimberly-Clark is expected to sell this facility to private equity funds (PEFs) or strategic investors (SIs) in South Korea, with the aim of withdrawing from the domestic toilet paper business. Brands such as Kleenex, Scot, and Poppy, which are part of the Yuhan Kimberly portfolio, are likely to continue operating under technology usage fee arrangements.

Kimberly-Clark's decision to sell the Gimcheon plant follows a recent trend of global restructuring within the company. In June 2023, Kimberly-Clark sold its global toilet paper division to Brazilian paper giant Suzano, retaining a 49% stake in the joint venture. The transaction valued the global division at USD 1.73 billion, reflecting the robust financial performance of the tissue and hygiene sector.

The toilet paper market, valued at USD 96.4 billion in 2025 and projected to reach USD 796.1 billion by 2035, is characterized by stable profits and low performance volatility. This market segment has seen significant growth due to heightened health awareness, urbanization, and increased demand for convenience-centric personal care products. Companies like Procter & Gamble, Sofidel Group, and Kimberly-Clark Corporation are among the top players in this market.

Yuhan Kimberly, the joint venture between Kimberly-Clark and Yuhan Corporation, holds a significant market share in Korea. With 30% of the market, Yuhan Kimberly is the largest player in the Korean toilet paper industry. Other notable competitors include Clean Country and Mona Lisa, with market shares of 15% and 10%, respectively. The potential sale of Yuhan Kimberly's toilet paper business presents an opportunity for PEFs and SIs to acquire a leading position in the market.

Private equity funds are expected to explore various investment strategies, including Bolt-On acquisitions, to maximize returns. Forming a consortium with strategic investors, who may have relatively insufficient funds, could be a more advantageous approach than a single acquisition.

As the market awaits further developments, investors and financial professionals are closely monitoring the progress of Kimberly-Clark's potential sale of its toilet paper business in Korea. The transaction, if finalized, is likely to reshape the competitive landscape of the Korean tissue and hygiene market.

References:
[1] https://www.mk.co.kr/en/stock/11392099
[2] https://www.mk.co.kr/en/stock/11392108
[3] https://www.futuremarketinsights.com/reports/tissue-and-hygiene-products-market