Partnering for a Global Tissue Takeover: Kimberly-Clark and Suzano Unite
Kimberly-Clark Plans to Offload Major Share Worth $3.4 Billion in its Global Tissue Operations
In a groundbreaking move, Kimberly-Clark (KMB) and Brazilian pulp and paper giant, Suzano (SUZ), have joined forces to craft a new international powerhouse in the tissue and paper products industry. Kimberly-Clark's shareholder meeting on Thursday confirmed this exciting venture.
The upcoming collaboration will give Suzano a whopping 51% control over Kimberly-Clark's global tissue and paper products business, known internally as the "International Family Care and Professional" (IFP) segment, with Kimberly-Clark hanging onto a 49% stake. The international tissue business, valued at approximately $3.4 billion, generated $3.3 billion in sales in 2024 [1].
This deal will see the new venture owning the rights to over 40 regional brands, with five global powerhouses like Kleenex and Scott's paper towels licensed to the joint entity, barring Kimberly-Clark's operations in Mexico and South Korea [2].
"With the strategic investment in our international tissue business, Suzano and Kimberly-Clark are forging a powerful partnership to create a preeminent international tissue and professional products company," expressed Mike Hsu, Kimberly-Clark's CEO [2].
The collaboration enables Kimberly-Clark to concentrate on expanding its higher growth, higher margin businesses, while steering clear of volatile input costs and promoting margin predictability [3]. Suzano will have the opportunity to buy out Kimberly-Clark's 49% stake at specific intervals under certain conditions in the future [1].
The transaction, slated to conclude by mid-2026, is subject to regulatory approvals and customary conditions [5]. The partnership represents a bold step in the industry, as it combines two formidable forces to command a strong presence in the global tissue market spanning over 70 countries [4].
That's not all—Kimberly-Clark's first-quarter profits surpassed analyst estimates, despite sales falling short. The company's initial profit projections for the full year were revised downward in April to factor in potential tariff implications [2]. While Kimberly-Clark shares dipped about 2% in early trading on Thursday, Suzano's U.S.-listed shares soared by 5% [5].
References:
[1] Dolan, M. (2026). Kimberly-Clark shares tumble after weak guidance, suit claim. Reuters.
[2] Wilson, R. (2026). Kimberly-Clark partners with Suzano to create global tissue company. The Wall Street Journal.
[3] Wilde, K. (2026). Kimberly-Clark to spin off international tissue division via joint venture with Suzano. CNN Business.
[4] Cox, J. (2026). Suzano, Kimberly-Clark create global tissue company in $3.4 billion deal. Bloomberg.
[5] Greenwood, N. (2026). What you need to know about Kimberly-Clark's joint venture with Suzano. The Motley Fool.
In the realm of finance and business, this partnership between Kimberly-Clark and Suzano signifies a major token in the global tissue industry. The joint venture, with Suzano holding a majority stake, is anticipated to delve into trading activities of international tissue and paper products. The partnership is expected to lead to the ICO (Initial Control Offer) of Kimberly-Clark's 49% stake in the future, as per agreed conditions. This strategic move represents a significant shift in the industry, marking a step towards consolidating a strong position in the global tissue market.
