Kimberly-Clark reports IFP segment as discontinued after Suzano joint venture

Kimberly-Clark Corporation (NASDAQ:KMB), currently trading near its 52-week low at $127.38 and commanding a market capitalization of $42.27 billion, disclosed Friday that it has begun reporting its former International Family Care and Professional (IFP) segment as discontinued operations, following a previously announced agreement with Suzano S.A. to form a joint venture.

According to a statement in the company’s SEC filing, Suzano and certain of its subsidiaries will acquire a 51% interest in the joint venture for approximately $1.7 billion, subject to closing adjustments. Kimberly-Clark will retain a 49% equity interest in the new entity, which will be comprised of substantially all operations of the IFP segment.

The company stated that this transaction represents a strategic shift expected to have a major effect on its operations and financial results. As a result, effective in the second quarter of fiscal 2025, the IFP business results are now reported as discontinued operations in the company’s condensed consolidated financial statements.

To assist investors in comparing historical results, Kimberly-Clark is providing supplemental financial information reflecting the IFP business as discontinued operations. The company’s common stock continues to be listed on the Nasdaq Stock Market under the ticker KMB.

This information is based on a statement in a press release included in the company’s SEC filing.

In other recent news, Suzano S.A. has announced the acquisition of a majority stake in Kimberly-Clark Corp.’s international tissue assets for $1.7 billion. This deal, which includes 22 production assets across 14 countries, is expected to increase Suzano’s tissue capacity by 1 million tons and reduce its cash flow volatility. S&P Global Ratings revised Suzano’s outlook to positive following this announcement. Additionally, Suzano and Kimberly-Clark have formed a strategic partnership to create a leading international tissue and professional products company. This joint venture, valued at $3.4 billion, will see Suzano holding a 51% stake and Kimberly-Clark retaining 49%.

Kimberly-Clark is also reportedly nearing the sale of its Kleenex division outside North America for approximately $3.5 billion, with Suzano as the prospective buyer. This move aligns with Kimberly-Clark’s strategy to focus on more profitable areas. In another development, Kimberly-Clark has promoted Russ Torres to President and COO, effective immediately. Torres, who has been with the company since 2020, will oversee daily operations, including the Global Supply Chain and R&D. His leadership has previously contributed to significant growth in Kimberly-Clark’s North America business.

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