Kimberly-Clark (K-C) has entered a $3.4bn agreement with Brazil’s Suzano to form a joint venture, creating an international tissue and professional products company.
It will focus on the manufacture, marketing and distribution of consumer and professional tissue products, including toilet paper, napkins, paper towels and facial tissues in over 70 countries.
K-C will own a 49% interest in the new venture, which will include all the assets of its International Family Care and Professional business, and Suzano will own 51%.
Being the owner of K-C’s international tissue assets, this includes 22 manufacturing facilities, approximately 9,000 employees, and marketing and selling regional and global brands such as Kleenex, Scott and WypAll.
Suzano will pay K-C $1.734bn in cash for its 51% stake at the closing of the transaction, subject to certain customary post-closing purchase price adjustments.
Mike Hsu, Chairman and Chief Executive Officer at K-C, said: “This transaction represents a powerful step forward in Kimberly-Clark’s transformation journey.”
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 one million tonnes of tissue a year.
The assets to be included in the new joint venture generated net sales in 2024 of approximately $3.3bn.
K-C 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, Chief Executive 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 commercialisation of both regional and global brands, as well as its extensive experience in managing operations across multiple regions worldwide.
“Both companies share strong organisational cultures rooted in innovation and sustainability. We look forward to combining great talent, good assets, and tremendous brands that are trusted by consumers.”
Hsu added: “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.”
Suzano is currently a leading player in toilet paper in Brazil, following the 2023 acquisition of K-C’s Brazilian tissue assets and brands.
Suzano is also in the process of building a new R$650m 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.
At closing of the transaction, Suzano and K-C 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 K-C.
The transaction also includes a call option for Suzano to acquire K-C’s 49% interest in the new company.
Closing of the transaction is contingent on approval by regulatory and governmental authorities, and is expected to close in mid-2026.
