Brazilian company Suzano and US company Kimberly-Clark announced on Wednesday the creation of a joint venture dedicated to the manufacture, marketing and distribution of tissue products for domestic and professional use, which will be present in over 70 countries.

Under the terms of the agreement, Suzano will control 51% of the capital of the new entity, which specializes in paper towels, toilet paper and tissues, while Kimberly-Clark will hold the remaining 49%.

The Brazilian group will pay Kimberly-Clark over $1.7bn in cash to acquire this majority stake, valuing the joint venture at around $3.4bn.

The transaction, which involves some 9,000 employees, is expected to be completed in mid-2026.

The new company, based in the Netherlands, will bring together 22 production sites in 14 countries across Europe, Asia, the Middle East, South America, Central America, Africa, and Oceania.

Together, these plants have an annual installed capacity of approximately one million tons of paper.

The transferred assets also represent net sales of approximately $3.3bn in 2024.

Kimberly-Clark plans to retain its consumer and industrial tissue businesses in the United States, as well as its interests in several existing joint ventures, including in Mexico, South Korea, and Bahrain.

However, more than 40 regional Kimberly-Clark brands will be integrated into the joint venture, which will also benefit from a long-term license to operate brands such as Kleenex, Scott, and Cottonelle.

Suzano became one of the leading players in the Brazilian toilet paper market in 2023 with the acquisition of Kimberly-Clark's local assets and brands.

The agreement gives it the option to purchase the 49% of the joint venture that it does not already own.


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