Brazil’s Suzano Leads Pack in Bid for Kimberly-Clark’s $4 Billion Tissue Business

Brazilian pulp giant Suzano SA has emerged as a frontrunner in the race to acquire Kimberly-Clark’s international tissue business. Bloomberg News reported on January 17, 2025, that the division could fetch around $4 billion.

Other potential buyers include Singapore’s Royal Golden Eagle and Asia Pulp & Paper Co. Kimberly-Clark’s decision to explore a sale aligns with its strategy to focus on more profitable segments.

The company announced in March 2024 that it would reorganize its operations. It combined its overseas consumer and professional tissue units into a new division called International Family Care & Professional.

This division generates approximately $3.5 billion in annual sales with operating margins of about 10%. Kimberly-Clark‘s move to divest comes after a challenging period for the company.

In October 2024, it lowered its full-year organic sales forecast due to weaker-than-expected results. Suzano’s interest in the acquisition makes strategic sense. The company has been expanding its presence in the consumer goods segment since 2017.

In June 2023, Suzano completed the purchase of Kimberly-Clark’s tissue business in Brazil. This move made Suzano the market leader in toilet paper in terms of transaction value.

The potential acquisition would give Suzano a significant boost in the global tissue market. It would also provide access to well-known brands like Kleenex and Scott. However, Suzano may face competition from other industry players eager to expand their market share.

Kimberly-Clark’s Potential Sale

Royal Golden Eagle, a Singapore-based conglomerate, has also shown interest in the deal. The company has a strong presence in the pulp and paper industry through its subsidiary, Asia Pacific Resources International Holdings Ltd (APRIL).

Asia Pulp & Paper, another potential buyer, is one of the largest pulp and paper companies in Asia. An acquisition of this scale would significantly strengthen its position in the global market.

The tissue paper industry has seen significant consolidation in recent years. Companies are seeking economies of scale and broader market reach. This trend reflects the industry’s response to changing consumer preferences and economic pressures.

Kimberly-Clark’s decision to sell comes at a time when the tissue market shows growth potential. Per capita consumption of tissue in emerging markets remains low compared to developed countries.

This gap suggests room for expansion and increased demand in the coming years. The outcome of this potential sale could reshape the global tissue paper industry landscape.

It may lead to further consolidation and shifts in market dynamics. As negotiations continue, industry observers will closely watch for any developments that could impact the sector’s future.

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