Suzano, the world’s largest market pulp producer, and Kimberly-Clark, a global leader in consumer products, have announced the formation of a US$3.4 billion joint venture focused on the production, marketing, and distribution of consumer and professional tissue products in over 70 countries. The joint venture will own Kimberly-Clark’s international tissue operations, including 22 tissue mills and approximately 9,000 employees. The portfolio will include leading regional and global brands such as Kleenex, Scott, and WypAll.
Under the terms of the agreement, Suzano will hold a 51% controlling interest, while Kimberly-Clark will retain a 49% stake in the new company. Suzano will pay Kimberly-Clark US$1.734 billion in cash upon closing, subject to customary post-closing adjustments. The transaction is expected to close in mid-2026, pending regulatory approvals, standard closing conditions, and the completion of an internal reorganization of Kimberly-Clark’s Consumer Tissue and Professional business unit.
The new company will be incorporated in the Netherlands and include 22 manufacturing facilities across 14 countries in Europe, Asia (including Southeast Asia), the Middle East, South America, Central America, Africa, and Oceania. These operations have a combined annual production capacity of approximately 1 million tonnes of tissue paper. In 2024, the assets to be included in the joint venture generated net sales of around US$3.3 billion.
Kimberly-Clark will maintain its tissue operations in the United States, as well as its interests in joint ventures located in Mexico, South Korea, and Bahrain, among other countries.
Beto Abreu, CEO of Suzano, stated: “This new company brings together two global players with complementary strengths: Suzano’s industrial expertise and operational excellence, and Kimberly-Clark’s capabilities in brand management, marketing, and global commercialization. Both companies share strong cultures grounded in innovation and sustainability. We look forward to uniting exceptional talent, high-quality assets, and iconic brands trusted by consumers worldwide.”
Marcos Assumpção, CFO of Suzano, added: “This transaction aligns with our disciplined capital allocation strategy and is consistent with Suzano’s financial policy. Partnering with Kimberly-Clark ensures business continuity and provides opportunities to drive operational efficiencies, mitigating risks typically associated with international expansion.”
Mike Hsu, Chairman and CEO of Kimberly-Clark, commented: “This agreement marks an important step in Kimberly-Clark’s transformation journey. We’re excited to partner with Suzano and confident in the value-creation potential for our International Family Care and Professional businesses.”
More than 40 regional brands from Kimberly-Clark’s International Family Care and Professional portfolios will be included in the transaction. The joint venture will also enter into a long-term licensing agreement for the use of Kimberly-Clark’s global brands, including Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional.
The move supports Suzano’s long-term growth strategy, which focuses on scalable businesses where the company can apply its core strengths in industrial operations and efficiency. This transaction follows Suzano’s 2023 acquisition of Kimberly-Clark’s Brazilian tissue operations, which made Suzano a leading toilet paper manufacturer in Brazil.
Suzano is currently building a new tissue paper mill in Aracruz (Espírito Santo, Brazil) with a approx. US$115 million million investment, expected to add 60,000 tonnes of annual capacity to its Consumer Goods Business Unit.
Luis Bueno, Executive Vice President of Consumer Goods and Corporate Affairs at Suzano, noted: “We already have deep knowledge of Kimberly-Clark’s culture and internal processes, following our acquisition of its Brazilian tissue business in 2023. The efficiency improvements we’ve achieved in Brazil serve as a model we aim to replicate in other regions. This is made possible by the exceptional quality of the Kimberly-Clark team, who have built iconic, innovative, and widely trusted brands used by millions of people every day.”
Upon closing, Suzano and Kimberly-Clark will formalize a joint venture agreement outlining governance and operational protocols, including shareholding and management rights. The new company will have a five-member Board of Directors, with three members appointed by Suzano and two by Kimberly-Clark. The agreement will also grant Suzano a call option to acquire Kimberly-Clark’s remaining 49% ownership in the future.
