Kimberly-Clark Strikes International Tissue Deal With Suzano
Kimberly-Clark formed a joint venture with Brazilian pulp company Suzano, offloading nearly all the assets of its international family care and professional portfolio for a spin-off that will manufacture, market and distribute toilet paper, facial tissues, paper towels and napkins.
The $3.4 billion deal will leverage Kimberly-Clark’s portfolio of consumer and professional tissue brands with Suzano’s industrial manufacturing efficiency.
This is part of ongoing restructuring efforts initially announced last year. The company is reorganizing into three main business areas and shoring up its supply chain to support efforts and cut costs.
"This transaction is a powerful step forward in the transformation strategy we laid out last year," said Kimberly-Clark CEO Mike Hsu in a statement, who added that the investment will help the company focus its portfolio on higher-growth, higher-margin businesses.
About the New Company
Kimberly-Clark is licensing out three consumer brands within its tissue unit outside the U.S — Scott, Kleenex and Viva. Additionally, the new entity will own 40 regional brands, among them are Andrex, Scottex, Hakle, Page and Suave.
The products will be sold across more than 70 countries, encompassing 22 manufacturing facilities — including in Europe, Asia, the Middle East, South America, Central America, Africa and Oceania — and an estimated 9,000 employees. The company will be based in the Netherlands.
Kimberly-Clark will retain a 49% stake of the new company, while Suzano takes majority ownership at 51%, paying $1.734 billion for its part. Kimberly-Clark's interests in Mexico and its joint venture in South Korea are outside the scope of this partnership.
The deal is expected to finalize in mid-2026 and Kimberly-Clark will retain its consumer tissue and professional businesses in the U.S.
