Kimberly-Clark sells majority stake in international tissue unit to Suzano for $3.4 billion

From Yahoo Finance: 2025-06-05 07:09:00

Kimberly-Clark sells majority stake in international tissue business to Brazilian pulp maker Suzano for $3.4 billion. Suzano to pay $1.73 billion for 51% stake, with option to purchase Kimberly-Clark’s ownership interest. Deal expected to close in mid-2026.

Strategic partnership formed between Kimberly-Clark and Suzano, creating new joint venture. Kimberly-Clark to contribute assets of international family care and professional business to reduce exposure to volatile costs and stabilize margins. New entity will have 22 manufacturing facilities in 14 regions.

Analyst believes deal will help Kimberly-Clark navigate uncertain macro environment by providing influx of capital. Company focusing on more profitable segments like personal care and North America tissue. Several consumer-facing companies engaging in strategic deals to boost growth and global exposure.

Suzano, one of the world’s largest pulp makers, pursues deal with Kimberly-Clark after failed talks with International Paper last year. Kimberly-Clark retaining consumer tissue and professional businesses in the U.S., as well as interests in joint ventures in Mexico, South Korea, and Bahrain.

Kimberly-Clark streamlining operations and cutting costs through deal with Suzano. New entity to be incorporated in the Netherlands, with 9,000 employees from international family care and professional business. Deal aims to derisk shares and provide room for growth in uncertain market.

Read more: Kimberly-Clark sells majority stake in international tissue unit to Brazil’s Suzano