Tissue Titans Unite: Suzano, Kimberly-Clark Form $3.4 Billion Global JV

Suzano S.A. (NYSE:SUZ) rolls up $3.4 billion in a tissue deal with Kimberly-Clark Corporation (NASDAQ:KMB).

São Paulo, Brazil-based Suzano will pay Kimberly-Clark $1.734 billion in cash for its stake in the joint venture.

This newly formed company will produce and distribute products such as toilet paper and facial tissues across 70 countries.

Suzano will hold a 51% stake in the venture, while Kimberly-Clark will retain a 49% share.

The joint venture is incorporated in the Netherlands. It will employ around 9,000 people and encompass 22 manufacturing facilities across 14 countries in regions.

These sites collectively have a production capacity of roughly 1 million tonnes of tissue products annually. They have generated around $3.3 billion in net sales in 2024.

Also Read: Kimberly-Clark Commits $2 Billion For US Expansion Overhaul

Additionally, the agreement grants Suzano a call option, allowing it to purchase Kimberly-Clark’s remaining 49% stake in the joint venture.

Post closure, Kimberly-Clark expects an estimated dilution of approximately 30 to 40 cents to adjusted EPS in the first full year after closing.

The transaction is expected to be finalized by mid-2026, pending regulatory and governmental approvals, customary closing conditions, and the completion of Kimberly-Clark’s corporate restructuring.

Upon completion of the transaction, Suzano and Kimberly-Clark will formalize a joint venture agreement outlining their respective rights and responsibilities regarding the governance, ownership, operations, and management of the new company.

Kimberly-Clark CEO Mike Hsu said, “Following years of deliberate investments that have strengthened Kimberly-Clark and IFP, we are excited to expand our partnership with Suzano and focus Kimberly-Clark’s portfolio on our higher growth, higher margin businesses.”

As of March 31, Kimberly-Clark’s cash and equivalents at quarter end was $563 million.

Price Action: SUZ shares are up 6.24% at $9.36 on Thursday’s last check.

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