Tuesday, January 27, 2015 6:45 am

Hadera Paper Ltd. announced that it is selling its 49.9% stake in the Hogla-Kimberly diaper company to its partner Kimberly-Clark Corp. for US $160 million. This sum includes US $10 million, for Hadera Paper not to compete in the diaper market, for at least four years. Hadera Paper said that the sale will yield a profit after tax of US $126 million.

Hadera Paper said that it expects to complete the deal within a very short period of time because Kimberly-Clark already has a controlling stake in the diaper company. The deal is subject to approval by the Israel Antitrust Authority.

Hogla-Kimberly will now be fully owned by Kimberly-Clark Turkey, which is itself fully owned by Kimberly Clark Corp. The deal also includes leasing and services, which will be provided to Hogla-Kimberly by Hadera Paper.

Hadera Paper chairman Yohanan Locker, who led negotiations for the deal, said, "The current agreement is in line with the strategy formed by the company to continue with its core businesses, manufacturing and recycling paper from a stronger and healthier position. We thank Kimberly-Clark for the fruitful partnership between the companies over many years and we are happy that Kimberly chose to continue to invest in the Israeli economy."