Irving-based Kimberly-Clark (NASDAQ: KMB) is spinning off a majority stake in its international tissue business by forming a joint venture with Sao Paolo, Brazil-based Suzano (NYSE: SUZ). The deal will create “a preeminent international tissue and professional products company” while “sharpening Kimberly-Clark’s focus on its higher growth,” the North Texas company said.

Under the deal, Kimberly-Clark will maintain a 49% stake in the joint venture—said to have an enterprise value of $3.4 billion—with Suzano acquiring a 51% interest for $1.734 billion in cash.

Suzano said the new business will be incorporated in the Netherlands and will include 22 manufacturing facilities located in 14 countries across Europe, Asia, including Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania.

Kimberly-Clark will retain its consumer tissue and professional businesses in the United States, along with its interests in existing joint ventures in Mexico, South Korea, and Bahrain, among other countries.

Mike Hsu

“This transaction is a powerful step forward in the transformation strategy we laid out last year,” Kimberly-Clark Chairman and CEO Mike Hsu said in a statement. “Following years of deliberate investments that have strengthened Kimberly-Clark and IFP, we’re excited to expand our partnership with Suzano and focus Kimberly-Clark’s portfolio on our higher growth, higher margin businesses.”

“Together, this positions each business to move forward with clarity and seize the tremendous opportunities ahead,” Hsu added. “We’re grateful to our global teams who have made this moment possible.”

Jeff Melucci, Kimberly-Clark’s chief strategy, business development, and administrative officer, called Suzano “a leader in its field, whose deep industrial manufacturing and fiber expertise complement Kimberly-Clark’s leading brands and world-class commercial capabilities.”

“We look forward to working closely with Suzano to ensure a smooth transition to this exciting venture for IFP, our customers, and other stakeholders to deliver on the promise inherent in the business,” Melucci added in a statement.

Shifting business mix toward company’s ‘iconic, global brands’

Kimberly-Clark said the deal will enable it to focus on its higher growth and higher margin business segments—specifically, its North America and international personal care businesses—while shifting its business mix towards its “iconic, global brands.”

When the deal is completed, around two-thirds of Kimberly-Clark’s net revenues will come from personal care categories, “improving its long-term growth trajectory, profitability and returns on investment,” the company said.

Kimberly-Clark CFO Nelson Urdaneta said the deal “generates immediate returns and long-term shareholder value as we capture the upside from a stronger international tissue and professional franchise and accelerate growth and innovation at Kimberly-Clark.” 

“As the largest fiber manufacturer in the world, Suzano has been an instrumental strategic partner in our efforts to build a more efficient and effective global supply chain,” Urdaneta added. “We look forward to strengthening that partnership in the years to come.”

Deal encompasses sales in more than 70 countries, 22 manufacturing facilities and 9,000 employees

Kimberly-Clark said it will contribute substantially all the assets of its International Family Care and Professional (IFP) business to the venture, which encompasses sales in more than 70 countries, 22 manufacturing facilities and approximately 9,000 employees. IFP’s more than 40 regional brands will be owned by the new entity and its five global brands, including Scott, Kleenex, Viva, WypAll and Kimberly-Clark Professional, will be licensed to the venture by Kimberly-Clark under a long-term agreement.

The business Kimberly-Clark is contributing to the joint venture generated around $3.3 billion of net sales in 2024, the company said.

Combining the know-how of ‘two global players’

Suzano CEO Beto Abreu said the new company arising out of the deal “brings together two global players that are leaders in their respective markets, with complementary capabilities that combine Suzano’s industrial expertise and operational management efficiency with Kimberly-Clark’s know-how in brand management, marketing and commercialization of both regional and global brands, as well as its extensive experience in managing operations across multiple regions worldwide.”

“Both companies share strong organizational cultures rooted in innovation and sustainability,”Abreu added in a statement. “We look forward to combining great talent, good assets, and tremendous brands that are trusted by consumers.”

The deal has been unanimously approved by Kimberly-Clark’s board of directors and is expected to close in mid-2026, the company said.

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