Suzano and Kimberly-Clark have announced the formation of a new US$3.4 billion joint venture focused on the production and commercialization of tissue products in over 70 countries.
The new company, to be incorporated in the Netherlands, will own Kimberly-Clark’s international tissue operations. This includes 22 manufacturing facilities across 14 countries in Europe, Asia, the Middle East, South America, Central America, Africa, and Oceania, with an installed annual production capacity of approximately 1 million tonnes. Approximately 9,000 employees will transition to the joint venture.
Suzano will acquire a 51% stake in the new entity for US$1.734 billion in cash, with Kimberly-Clark retaining 49%. Completion of the transaction—expected by mid-2026—is subject to regulatory approvals and customary closing conditions, including a corporate reorganization of Kimberly-Clark’s Consumer Tissue and Professional business unit.
The joint venture will manage and market a portfolio of well-known global and regional brands, including Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional, through a long-term license agreement. Kimberly-Clark will retain its tissue and professional businesses in the U.S., and its joint ventures in Mexico, South Korea, Bahrain, and other countries.
“This new company brings together two global players that are leaders in their respective markets,” said Beto Abreu, CEO of Suzano. “We look forward to combining great talent, good assets, and tremendous brands that are trusted by consumers.”
Mike Hsu, Chairman and CEO of Kimberly-Clark, added: “This transaction represents a powerful step forward in Kimberly-Clark’s transformation journey. We are pleased to partner with Suzano and look forward to unlocking significant opportunities ahead.”
The transaction aligns with Suzano’s strategy of disciplined, value-accretive growth. It follows the company’s 2023 acquisition of Kimberly-Clark’s Brazilian tissue assets and its ongoing construction of a R$650 million tissue mill in Aracruz, Brazil.
A joint Board of Directors will govern the new company, with Suzano appointing three members and Kimberly-Clark two. The agreement also includes a call option for Suzano to acquire the remaining 49% stake in the future.