Suzano and Kimberly-Clark Announce Global Tissue Joint Venture

A major international partnership is forming in the tissue industry, as two powerhouse companies launch a global tissue collaboration.

Formation of a New Industry Powerhouse

Suzano and Kimberly-Clark recently announced the Global Tissue Joint Venture, combining their expertise in production, branding, and distribution globally.

Under the agreement, Suzano will acquire a 51% stake, with Kimberly-Clark retaining the remaining 49% interest in the new company.

Suzano will pay $1.734 billion in cash to Kimberly-Clark at closing, pending standard post-closing purchase price adjustments.

This transaction will create a $3.4 billion company focused on manufacturing and distributing consumer and professional tissue products worldwide.

Strategic Synergy of Global Leaders

Beto Abreu, CEO at Suzano, stated the Global Tissue Joint Venture merges two leading companies with complementary strengths and shared goals.

Suzano brings operational efficiency and industrial scale, while Kimberly-Clark contributes branding, marketing, and commercialization expertise.

Together, they will manage more than 22 production facilities in 14 countries across five continents, producing over one million tons annually.

These plants manufacture a wide range of products, including facial tissues, paper towels, napkins, and toilet paper.

In 2024, the joint assets generated approximately $3.3 billion in net sales, reflecting the strong performance of both companies.

Iconic Brands and Global Reach

The Global Tissue Joint Venture will integrate more than 40 regional brands from Kimberly-Clark’s international portfolio.

The venture will also include long-term licenses for globally recognized names such as Kleenex, Cottonelle, Scott, Viva, and WypAll.

Notably, Kimberly-Clark will retain its consumer and professional tissue businesses in the U.S. and select international partnerships.

Mike Hsu, CEO of Kimberly-Clark, emphasized the deal’s strategic value in transforming its business and expanding international opportunities.

Governance and Future Plans

A five-member board will guide the new company, with Suzano appointing three directors and Kimberly-Clark naming two.

Around 9,000 employees will transition under this partnership, strengthening the operational capacity and integration of both companies.

Additionally, Suzano holds a call option to purchase the remaining 49% interest, allowing future full ownership of the venture.

Leaders at Suzano affirm that the transaction reflects their disciplined investment strategy and strengthens international expansion with minimal risk.

Cultural Alignment and Operational Excellence

Suzano’s previous acquisition of Kimberly-Clark’s Brazilian tissue business deepened their understanding of the company’s culture and internal processes.

Luis Bueno highlighted how this understanding has already produced efficiency gains that can extend across the new international operations.

Both companies aim to build on each other’s talents, advancing innovation and meeting daily consumer needs around the globe.

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