This undated illustration shows Kleenex Brand Anti-Viral tissue.
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Kimberly-Clark on Thursday struck a deal with Brazilian pulp maker Suzano to sell a majority stake in its international tissue business, valuing the business at about $3.4 billion, the Kleenex tissue maker said.
The deal, structured as a strategic partnership, will form a new joint venture in which Kimberly-Clark would hold a 49% stake, while Suzano will pay about $1.73 billion in cash for the 51% stake.
Suzano, which is one of the world’s largest pulp makers, will have the option to purchase Kimberly-Clark’s ownership interest under certain conditions, the Irving, Texas-based company said. The deal is expected to close in mid-2026.
Several consumer-facing companies, such as General Mills and PepsiCo, have ramped up strategic deals over the last year in a bid to boost growth and increase global exposure.
In September, General Mills divested its North American yoghurt segment for $2.1 billion to focus on faster-growing snacks and pet food business. PepsiCo bought tortilla-chip maker Siete Foods for $1.2 billion a month later.
Kimberly-Clark has also been simplifying its operations and reorganizing its business to cut costs and focus on more profitable parts, such as personal care and North America tissue segments.
In April, the Huggies diaper maker slashed its full-year profit forecast and said it would incur about $300 million tariff-related costs.
Kimberly-Clark on Thursday said it would contribute assets of its international family care and professional business, including 9,000 employees, to its new venture with Suzano and said the deal would reduce exposure to volatile input costs and stabilize margins.
The combined business entity would be incorporated in the Netherlands and include 22 manufacturing facilities located in 14 regions, such as Europe, Asia, Middle East, Central America.
As part of the JV, Kimberly Clark will retain its consumer tissue and professional businesses in the U.S. and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.
