Scott Paper up for sale: Reaches trademark agreement with Kimberly-Clark

Scott Paper of Mississauga, Ont. has put itself on the block following the successful completion of a trademark and technology licensing agreement with Kimberly-Clark Corporation.

The agreement gives the Canadian company use of the Cottonelle, Viva and Scott brands, now owned by Kimberly-Clark, for a 10-year period, at which point they will revert to Kimberly-Clark.

Baby Fresh, recently bought by Procter & Gamble in the u.s., is expected to move to p&g in Canada as well.

Scott’s White Swan and Purex are Canadian-developed brands and were not part of the discussions.

David Erskine, new president of Scott Canada, says he is pleased with the agreement, as it gives Scott Canada everything it needs to be a freestanding and viable company, but that at some point over the next 10 years, the company will have to be renamed, and new brands developed.

Erskine, previously corporate vice-president and chief financial officer, recently took over the presidency from Lee Griffith who had been president and ceo of Scott Paper since January 1995.

Griffith resigned for personal and family reasons and is returning to the u.s.

Although Kimberley-Clark announced last year that it would sell its 50.1% stake in Scott Canada, the company is now looking for a purchaser to take on 100% ownership of the company.

Kimberly-Clark picked up its piece of the Canadian company when Scott Paper Company (u.s.) was merged with Kimberly-Clark corporation of Dallas, Tex. last December.

Canada’s Competition Bureau would not sanction the sale here because the purchase of Scott would give Kimberly-Clark control of about 45% of the country’s tissue market.

Scott Paper Limited is a Canadian public company which makes and markets Cottonelle and Scott Purex bathroom tissue, Scott Towels, Scott facial tissue, Scott Family Napkins, Viva paper towels, and Baby Fresh and Cottonelle pre-moistened hygienic wipes.

In Canada, the Scott Paper business is with J. Walter Thompson and Bozell Palmer Bonner.