DALLAS, Texas (From news reports) -- Kimberly-Clark has decided to call off the sale of its European tissue business, which includes popular household loo roll brand Andrex, after the unit fetched far less than $1.2bn price tag it hoped to get.
According to people close to the situation, the US group is expected to call off the auction process this weekend. The sale attracted interest from private equity firm Centerbridge Partners and a consortium bid from Goldman Sachs Capital Partners and PAI Partners.
One person close to the process said the Goldman consortium initially bid around $1.4bn for the unit but then substantially lowered its offer to below $900m, citing a number of factors including the turbulence Britain's exit from the EU.
Both groups had been shortlisted for the final round of the multi-month sale process.
The Goldman group had recruited Giles Turrell, the former boss of cereals group Weetabix, to help with its offer, people close to the process previously told the Financial Times.
Kimberly-Clark did not immediately respond to a request for comment.
Besides Andrex in the UK and Ireland, brands in Kimberly-Clark's European business include Hakle in Austria and Switzerland and Scottex in Belgium, Italy and Spain.
The sale process was prompted by Kimberly-Clark's desire to exit less profitable businesses.
Kimberly-Clark declined to comment.