News Summary
Kimberly-Clark has announced a joint venture with Suzano valued at $3.4 billion, focusing on the international tissue market. The partnership allows Kimberly-Clark to maintain a 49% stake while Suzano holds 51%. With operations in 14 countries and 22 manufacturing facilities, the venture aims to leverage both companies’ strengths. This strategic move will enable Kimberly-Clark to focus on growth areas while incorporating over 40 regional brands into the new entity. The deal is expected to close in mid-2026, pending approvals.
Georgia – Kimberly-Clark, a leading global health and hygiene company, has announced a significant restructuring of its international tissue business through a $3.4 billion joint venture with Brazilian firm Suzano. Under this agreement, Kimberly-Clark will contribute a majority of its international tissue operations while still retaining a notable stake in the new entity.
The joint venture, which is set to be valued at approximately $3.4 billion, will see Kimberly-Clark retaining 49% ownership of the new business. Suzano will assume 51% ownership for a cash payment of $1.734 billion. This strategic partnership aims to create one of the top players in the global tissue and professional products market.
Details of the Joint Venture
The newly formed entity will be headquartered in the Netherlands and incorporate 22 manufacturing facilities located in 14 countries across Europe, Asia, Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania. The facilities will house approximately 9,000 employees and are capable of producing around 1 million tonnes of tissue products annually.
In 2024, the assets included in this joint venture achieved net sales of around $3.3 billion. Major brands such as Scott, Kleenex, Cottonelle, WypAll, and Kimberly-Clark Professional will be licensed to the new business under a long-term agreement, enhancing its presence in the market.
Strategic Goals
This joint venture allows Kimberly-Clark to focus on its core businesses within North America and international personal care segments that offer higher growth potential and margins. With the formation of this new entity, Kimberly-Clark looks to channel its resources into more lucrative products while benefiting from Suzano’s expertise in fiber production and supply chain efficiency.
The joint venture’s management structure will consist of a board of five members, with Suzano appointing three and Kimberly-Clark appointing two. Additionally, Suzuki will have the option to acquire Kimberly-Clark’s remaining 49% interest in the joint venture under various conditions.
Timeline and Future Outlook
The closing of the transaction is anticipated to occur in mid-2026, pending regulatory approvals and customary conditions. CEO Mike Hsu of Kimberly-Clark has described this transaction as a notable advancement in the company’s ongoing transformation strategy, aiming to adapt to changing market conditions and consumer demands.
Contextual Background
Kimberly-Clark boasts a strong portfolio of renowned consumer brands and professional product offerings. This move is indicative of a broader trend in the industry where companies are seeking to optimize operations, cut down on costs, and maximize returns on investment. The collaboration with Suzano comes at a time when efficiencies in production and distribution are crucial for businesses operating on a global scale.
Through this joint venture with Suzano, Kimberly-Clark is not only reinforcing its commitment to innovation and quality but also positioning itself strategically to enhance its competitive edge in the ever-evolving global tissue market.
Deeper Dive: News & Info About This Topic
- Business Wire: Suzano and Kimberly-Clark Announce a Global Tissue Company
- Reuters: Kimberly-Clark to Sell International Tissue Business
- Investopedia: Kimberly-Clark to Sell Majority of Global Tissue Business
- CNBC: Kimberly-Clark to Sell International Tissue Business
- PR Newswire: Kimberly-Clark Announces Major Step Forward
