Suzano Takes Control of Kimberly-Clark’s International Tissue Business in $3.4 Billion Deal

Suzano, the world’s largest pulp producer, will take a controlling 51% stake in a new $3.4 billion joint venture with Kimberly-Clark, the American company behind Kleenex.

This deal, confirmed by both companies on June 5, 2025, marks a major shift in the global paper and tissue industry. Suzano will pay $1.734 billion in cash for its share, with the transaction expected to close by mid-2026, pending regulatory approval.

The joint venture will combine 22 manufacturing plants across 14 countries, employ about 9,000 people, and serve over 70 countries. The assets involved generated $3.3 billion in net sales in 2024.

Suzano will gain control of more than 40 regional brands and secure long-term licenses for major names like Kleenex and Scott. The new company will be based in the Netherlands.

Kimberly-Clark will keep its tissue businesses in the United States and hold interests in joint ventures in Mexico, South Korea, and Bahrain.

The American firm will retain a 49% stake in the new company and has agreed that Suzano can buy the remaining shares after three years, under specific conditions.

This deal allows Suzano to move beyond bulk pulp sales and into branded consumer products. It also gives the company a global platform in the tissue market, building on its 2023 acquisition of Kimberly-Clark’s Brazilian tissue business.

Strategic Realignment in Tissue Market

Suzano is currently building a new tissue factory in Brazil, which will boost its annual capacity by 60,000 tons. For Kimberly-Clark, the transaction fits a clear strategy: focus on higher-margin personal care products and North American operations.

By selling a majority stake in its international tissue business, the company will reduce its exposure to volatile raw material costs and free up capital for share buybacks and investment in more profitable areas.

Kimberly-Clark expects a short-term dip in earnings per share, but anticipates improved margins and less earnings volatility over time. The joint venture faces challenges, including integrating operations across many regions and managing cultural differences.

However, both companies expect the partnership to drive operational efficiency and innovation. The deal reflects a broader trend of companies seeking scale and efficiency in a competitive, cost-sensitive market.

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