P&G to sell Japan adult diaper business to Daio

TOKYO (Reuters) - Procter & Gamble Co. PG.N will sell its Japanese adult diaper business to Daio Paper Corp. 3880.T, exiting a market that is growing 5-10 percent each year as the population grays.

P&G, known for products such as Tide detergent and Pampers diapers, had said in February it was looking to unload its Attento diaper brand because it did not fit into its strategy of focusing on products that it can expand on a global scale.

Daio and P&G did not disclose financial terms.

P&G launched the Attento brand nationwide in 1982. Its diapers are now sold mainly in Japan, with some sold in Hong Kong. P&G does not sell adult diapers anywhere else.

The Japanese market for paper diapers is worth about 60 billion yen ($489 million).

Daio said the acquisition would make it the No. 2 ranked player in the market after top maker Uni-Charm Corp. 8113.T. Other makers include unlisted Hakujuji Co. Ltd. and Kao Corp. 4452.T.

Nomura Securities, a unit of Nomura Holdings Inc. 8604.T, handled the deal.