The new JV 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 tonnes of tissue a year.
June 05, 2025
Suzano, the world’s largest pulp producer, and Kimberly-Clark, a global leader in the consumer staples industry, has announced the creation of a USD 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 USD 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. The transaction is expected to close in mid-2026.
Watch: In Pursuit of Lesser Water Footprint
Closing of the transaction depends upon many other things such as 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 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 tonnes of tissue a year. The assets to be included in the new joint venture generated net sales in 2024 of approximately USD3.3 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.
Mr. 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.”
Mr. 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.”
Also Read: DS Packaging Leads with Ethical Sustainability and Eco-Intent on World Environment Day
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.
The transaction is aligned with Suzano’s long-term strategy of value-accretive growth with financial discipline, focusing on scalable businesses where the company can leverage its strength in operational efficiency.
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.
