Suzano, the world’s largest pulp producer, and Kimberly-Clark, a global leader in the consumer staples industry, 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 tons 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.”
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.
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.
