Kleenex Tissue Maker Kimberly-Clark Offloads Majority Stake In International Tissue Business To Brazil’s Suzano

Kleenex tissue maker Kimberly-Clark (KMB) announced on Thursday that it will sell a majority stake in its international tissue business to Brazil’s Suzano (SUZ) in a deal valued at $3.4 billion.  

Kimberly-Clark will form a strategic partnership with Suzano to create an international tissue and professional products company. Kimberly-Clark will own a 49% interest, while Suzano will own the remaining 51%.

Following the announcement, Kimberly-Clark shares traded 0.31% lower in Thursday’s premarket, while Suzano stock rose over 3%.

Kimberly-Clark’s International Family Care and Professional (IFP) business, which will be contributed to the new venture, generated approximately $3.3 billion of net sales in 2024.

CFO Nelson Urdaneta stated the transaction generates immediate returns and long-term shareholder value through buybacks.

The two companies expect their combined capabilities and infrastructure to potentially reduce total delivered product costs and supply both branded and private label offerings across markets.

Moreover, once the deal is closed, approximately two-thirds of Kimberly-Clark’s net revenues will come from personal care categories, which will likely improve its long-term growth trajectory, profitability, and returns on investment.

The company also expects to reduce its exposure to more volatile input costs, leading to predictable, consistent margins and profit growth.

The deal is likely to be approximately $0.30-0.40 dilutive to the firm’s adjusted earnings per share in the first full year following close. The transaction is expected to close in mid-2026.

Kimberly-Clark shares gained nearly 6% in 2025 and over 1% in the last 12 months. NYSE-listed shares of Suzano have declined over 13% this year and 0.45% in the past 12 months.

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