Kimberly-Clark to Form Global Tissue Joint Venture with Suzano

Kimberly-Clark has announced plans to spin off its international tissue business—best known for brands such as Kleenex and Andrex—into a new $3.4 billion joint venture with Brazilian pulp producer Suzano.

The move will see Suzano acquire a 51% controlling interest in the new entity for approximately $1.7 billion, with Kimberly-Clark retaining the remaining 49%.

The partnership marks a significant step in Kimberly-Clark’s ongoing restructuring efforts. The Texas-based consumer goods company aims to streamline its operations, reduce costs, and concentrate on strengthening its manufacturing capacity in the United States. The new venture will exclude Kimberly-Clark’s US-based tissue operations, which it will continue to operate independently, along with its interests in joint ventures in Mexico, South Korea, and Bahrain.

Set to be headquartered in the Netherlands, the new company will operate in over 70 countries across Europe, Asia, the Middle East, Latin America, Africa, and Oceania. It will include 22 manufacturing sites in 14 countries and employ approximately 9,000 people. According to the companies, the business generated about $3.3 billion in net sales in 2024 and $500 million in EBITDA.

Suzano, the world’s largest producer of market pulp, views the transaction as a strategic step toward vertical integration, expanding its reach from pulp production into finished consumer products. This follows the company’s acquisition of Kimberly-Clark’s Brazilian tissue operations in 2023 and ongoing investment in domestic tissue production facilities.

Beto Abreu, Suzano’s CEO, emphasized that the partnership brings together complementary strengths—Kimberly-Clark’s expertise in global brand management and Suzano’s efficiency in manufacturing and operations.

“This new company brings together two global players that are leaders in their respective markets,” said Abreu, highlighting the shared values of innovation and sustainability.

Kimberly-Clark Chairman and CEO Mike Hsu described the joint venture as a “powerful step forward” in the company’s transformation strategy, positioning it for long-term value creation through focus and collaboration. As part of the deal, the joint venture will be granted long-term licenses to use Kimberly-Clark’s internationally recognized brands, including Kleenex, Scott, Cottonelle, Viva, WypAll, and Kimberly-Clark Professional.

The agreement includes a call option for Suzano to purchase the remaining 49% stake in the future, providing a pathway to full ownership. The transaction is expected to close by mid-2026, pending regulatory approvals and completion of Kimberly-Clark’s internal reorganization.

Suzano’s Chief Financial Officer, Marcos Assumpção, described the deal as aligned with the company’s disciplined capital strategy, aimed at generating long-term shareholder value. Kimberly-Clark’s international tissue business will now operate under a new governance structure, with a five-member board—three appointed by Suzano and two by Kimberly-Clark.

With input from the Financial Times and Business Wire.