Suzano, the world's largest pulp producer and a global leader in the manufacture of eucalyptus-based bioproducts, and Kimberly-Clark, one of the world's largest personal care and hygiene companies, announced the creation of a joint venture that will operate globally in the tissue products market. Valued at approximately $3.4 billion, the new company will be responsible for the production, marketing, and distribution of consumer products such as toilet paper, napkins, paper towels, and facial tissues in more than 70 countries. Suzano will acquire a 51% stake in the joint venture, while Kimberly-Clark will retain 49%.
Suzano will pay Kimberly-Clark $1.734 billion for the 51% stake in the company, in a cash transaction at closing. This amount is subject to adjustments customary in this type of transaction due to economic and operational factors.
The transaction is subject to regulatory and governmental approval, customary closing conditions, and the completion of Kimberly-Clark's corporate reorganization of its Consumer Tissue Professional business units. The transaction is expected to close by mid-2026 and will affect approximately 9,000 employees.
The joint venture will be headquartered in the Netherlands and will operate 22 factories located in 14 countries across Europe, Asia (including Southeast Asia), the Middle East, South America, Central America, Africa, and Oceania. These factories have a combined installed capacity of approximately 1 million tons per year. In 2024, the assets incorporated into the joint venture generated net revenues of around US$3.3 billion.
Kimberly-Clark's assets in the United States and its stakes in joint ventures in Mexico, South Korea, Bahrain, and other countries are not included in the agreement.
More than 40 regional brands from Kimberly-Clark's Consumer Tissue and Professional businesses will be transferred to the joint venture. Global brands such as Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional will also be part of the agreement through a long-term licensing agreement.
The operation is aligned with Suzano's long-term growth strategy, focused on value creation and financial discipline, in scalable businesses where the company can leverage its competitiveness through operational efficiency.
Once the transaction is completed, Suzano and Kimberly-Clark will sign a Shareholders' Agreement that will establish the rights and obligations related to the management, control, operation, equity participation, and other relevant matters of the joint venture. Following its approval, the new company will have a Board of Directors composed of five members: three appointed by Suzano and two by Kimberly-Clark.
Legal Advisors
Suzano Papel e Celulose Advisors:
- Freshfields: Partner Rhys Evans. Attorneys Jordan Camilleri, Danyela Vander-Sande, Richard Ho, Enrique Dancausa, Christy Lee, Chatelle Nicholas and Bahawal Ali.
- Posse Herrera Ruiz acted as legal advisor in Colombia: Partners Gabriel Sánchez and Jaime Herrera. Attorneys Nicolás Salazar, Carolina Castro and Gabriel Jaramillo.
Kimberly-Clark Advisors:
- Kirkland & Ellis: Socia Kim Hicks.
- Baker McKenzie: Olivia Tyrrell.
