Kimberly-Clark forms strategic partnership with Suzano for tissue and professional products

Published 05/06/2025, 12:26
© Reuters.

Investing.com -- Kimberly-Clark (NYSE:KMB), a multinational personal care corporation, has entered into a strategic partnership with Suzano, a Brazilian pulp and paper company.

The partnership aims to form a leading international tissue and professional products company.

Kimberly-Clark will hold a 49% interest in the new venture, while Suzano will own the remaining 51%.

The venture will comprise substantially all assets of Kimberly-Clark’s International Family Care (IFC) and Professional business.

The IFC business, which Kimberly-Clark will contribute to the venture, spans sales in over 70 countries, includes 22 manufacturing facilities, and employs approximately 9,000 people.

The partnership will own more than 40 regional brands under the IFC portfolio. Additionally, Kimberly-Clark’s five global brands, namely Scott, Kleenex, Viva, WypAll, and Kimberly-Clark Professional, will be licensed to the venture under a long-term agreement.

However, Kimberly-Clark’s interests in Mexico and its joint venture in South Korea are not included in this transaction.

The transaction is anticipated to result in a $0.30 to $0.40 dilution to Kimberly-Clark’s Adjusted Earnings Per Share in the first full year following the close.

The deal also includes a call option for Suzano to acquire Kimberly-Clark’s 49% interest, exercisable from and after the third anniversary of the closing date.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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