Suzano and Kimberly-Clark have announced the creation of a US$3.4 billion joint venture focused on the manufacture, marketing, and distribution of consumer and professional tissue products. This new entity will operate in over 70 countries, significantly expanding Suzano's global footprint.
Under the terms of the agreement, Suzano will acquire a 51% interest in the new company, paying Kimberly-Clark US$1.734 billion in cash. Kimberly-Clark will retain a 49% interest, with the transaction expected to close in mid-2026, subject to regulatory approvals and customary conditions.
The joint venture will encompass 22 manufacturing facilities located in 14 countries across Europe, Asia, the Middle East, South America, Central America, Africa, and Oceania, with an installed capacity of approximately 1 million tonnes of tissue per year. These assets generated net sales of approximately US$3.3 billion in 2024.
Suzano's CEO, Beto Abreu, highlighted that the new company combines Suzano’s industrial expertise and operational management efficiency with Kimberly-Clark’s know-how in brand management, marketing, and commercialization. This partnership is designed to extract value and leverage fiber-to-fiber substitution opportunities.
Chief Financial Officer Marcos Assumpção confirmed that Suzano will finance the US$1.734 billion acquisition from its cash reserves, with an 'almost imperceptible' impact on the company's debt levels. This demonstrates Suzano's disciplined approach to capital allocation and strong financial position.
The transaction includes a long-term license for global brands such as Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional, and Suzano will have a call option to acquire Kimberly-Clark’s remaining 49% interest. This strategic move aligns with Suzano’s long-term strategy of value-accretive growth and internationalization.
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