SAO PAULO (From news reports) -- Kimberly-Clark on Thursday, June 5, struck a deal with Brazilian pulp maker Suzano to sell a majority stake in its international tissue business, valuing the business at about $3.4 billion, the Kleenex tissue maker said.
The deal, structured as a strategic partnership, will form a new joint venture in which Kimberly-Clark would hold a 49% stake, while Suzano will pay about $1.73 billion in cash for the 51% stake.
Suzano, which is one of the world's largest pulp makers, will have the option to purchase Kimberly-Clark's ownership interest under certain conditions, the Irving, Texas-based company said. The deal is expected to close in mid-2026.
Several consumer-facing companies, such as General Mills and PepsiCo, have ramped up strategic deals over the last year in a bid to boost growth and increase global exposure.
In September, General Mills divested its North American yoghurt segment for $2.1 billion to focus on faster-growing snacks and pet food business. PepsiCo bought tortilla-chip maker Siete Foods for $1.2 billion a month later.
Kimberly-Clark has also been simplifying its operations and reorganizing its business to cut costs and focus on more profitable parts, such as personal care and North America tissue segments.
In April, the Huggies diaper maker slashed its full-year profit forecast and said it would incur about $300 million tariff-related costs.
Kimberly-Clark on Thursday said it would contribute assets of its international family care and professional business, including 9,000 employees, to its new venture with Suzano and said the deal would reduce exposure to volatile input costs and stabilize margins.
The combined business entity would be incorporated in the Netherlands and include 22 manufacturing facilities located in 14 regions, such as Europe, Asia, Middle East, Central America.
As part of the JV, Kimberly Clark will retain its consumer tissue and professional businesses in the U.S. and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.
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Suzano News release
São Paulo, June 5th 2025: Suzano, the world's largest pulp producer, and Kimberly-Clark, a global leader in the consumer staples industry, today announced the creation of a US$3.4 billion joint venture focused on the manufacture, marketing and distribution of consumer and professional tissue products, such as toilet paper, napkins, paper towels and facial tissues in over 70 countries. Suzano will acquire a 51 percent interest in the new entity, with Kimberly-Clark holding a 49 percent interest.
Suzano will pay Kimberly-Clark US$1.734 billion in cash for its 51 percent stake at the closing of the transaction, subject to certain customary post-closing purchase price adjustments. Closing of the transaction is contingent on, among other things, approval by regulatory and other governmental authorities, fulfillment of customary conditions precedent for transactions of this nature, and completion by Kimberly-Clark of a corporate reorganization of its Consumer Tissue and Professional business unit. The transaction is expected to close in mid-2026 and involves approximately 9,000 employees.
The new business will be a company incorporated in the Netherlands and will include 22 manufacturing facilities located in 14 countries across Europe, Asia, including Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania. Collectively, these facilities have an installed capacity to produce approximately 1 million tonnes of tissue a year. The assets to be included in the new joint venture generated net sales in 2024 of approximately US$3.3 billion.
Kimberly-Clark will retain its consumer tissue and professional businesses in the United States and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.
Beto Abreu, CEO of Suzano, said:
"This new company brings together two global players that are leaders in their respective markets, with complementary capabilities that combine Suzano's industrial expertise and operational management efficiency with Kimberly-Clark's know-how in brand management, marketing and commercialization of both regional and global brands, as well as its extensive experience in managing operations across multiple regions worldwide.
"Both companies share strong organizational cultures rooted in innovation and sustainability. We look forward to combining great talent, good assets, and tremendous brands that are trusted by consumers."
Marcos Assumpção, CFO of Suzano, said:
"This transaction reflects Suzano's disciplined approach to capital allocation with value creation and fully in line with our financial policy. Moreover, the partnership with Kimberly-Clark ensures business operational continuity and an alignment towards operational efficiency opportunities, mitigating risks typically encountered during international expansion."
Mike Hsu, Chairman and Chief Executive Officer at Kimberly-Clark, said:
"This transaction represents a powerful step forward in Kimberly-Clark's transformation journey. We are pleased to enter into a strategic partnership with Suzano, a leader in its field, and we look forward to working closely together to deliver on the significant opportunities ahead for our International Family Care and Professional Business."
More than 40 regional brands of Kimberly-Clark´s International Family Care and Professional portfolio will be transferred into the joint venture, that will also enter into a long-term license with the new company for use of its global brands, including Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional.
The transaction is aligned with Suzano's long-term strategy of value-accretive growth with financial discipline, focusing on scalable businesses where the company can leverage its strength in operational efficiency.
Suzano is currently a leading player in toilet paper in Brazil, following the 2023 acquisition of Kimberly-Clark's Brazilian tissue assets and brands. Suzano is also in the process of building a new R$650 million (approximately US$115 million) tissue paper mill at its site in Aracruz in the state of Espírito Santo, which will add 60,000 tonnes of annual capacity to the company's Consumer Goods Business Unit.
Luis Bueno, Executive Vice President of Consumer Goods and Corporate Affairs at Suzano, said:
"We have an excellent understanding of Kimberly-Clark ´s culture and internal processes, thanks to our 2023 acquisition of the Brazilian tissue business. We have already been able to achieve significant efficiency gains in these operations, which we are confident can be replicated in other regions.
"Our ability to achieve this goal is intrinsically tied to the tremendous quality of the talent within Kimberly-Clark ´s team, who have helped develop and grow iconic, innovative and trusted brands that are a part of the everyday lives of hundreds of millions of people around the world."
At closing of the transaction, Suzano and Kimberly-Clark will enter into a joint venture agreement establishing certain rights and obligations related to the management, control, operation, shareholding, and other matters concerning the joint venture. It will have a Board of Directors with five members, three of whom will be appointed by Suzano and two of whom will be appointed by Kimberly-Clark. The Transaction also includes a call option for Suzano to acquire Kimberly-Clark's 49% interest in the new company.
