Hypermarcas can sell diapers area for Kimberly-Clark, says source

SAO PAULO (Reuters)-Hypermarcas is in talks to sell its diapers for the American Group Kimberly-Clark, narrowing the focus of the Brazilian company on pharmaceuticals, said on Thursday a source with knowledge of the direct subject. The source, who declined to be identified because the negotiations are ongoing, did not inform the price of the transaction. An agreement will be announced in the next few days, added the source. Hypermarcas had hired Citigroup, Bank of America Merrill Lynch and Banco Bradesco BBI to find alternatives to the diaper drive, sources told Reuters recently. The alternatives included a potential spin-off, partnerships or even involve a sale of assets, according to a document sent to the Brazilian Securities Commission (CVM) in early May. Hypermarcas did not comment on the matter immediately. The spokesman for Kimberly-Clark, Bob Brand, said the company doesn't comment on rumors or speculation. According to the source, Hypermarcas wants to leave the diaper market because the performance was hampered by lack of scale, brand recognition and increased cost of imported raw materials for the product in the devaluation of the real against the dollar. In addition to the Kimberly-Clark, Hypermarcas also had offered the unit of diapers to a group of companies that includes the Chilean Companies CMPC, Procter Gamble and Svenska Cellulosa &. Hypermarcas initially intended to raise about 1.5 billion reais from the sale of the unit, which owns the brands Sambrook and Pompom.