SUZ News & Events

Kimberly-Clark (KMB) announced that it has entered into an agreement with Suzano (SUZ) to form a strategic partnership, creating a preeminent international tissue and professional products company and sharpening Kimberly-Clark's focus on its higher growth, higher margin businesses. Kimberly-Clark will own a 49% interest in the new venture, which will include substantially all the assets of its International Family Care and Professional business, and Suzano will own 51%. Kimberly-Clark will contribute substantially all the assets of its IFP business to the venture, which encompasses sales in more than 70 countries, 22 manufacturing facilities and approximately 9,000 employees. IFP's more than 40 regional brands will be owned by the new entity and its five global brands, including Scott, Kleenex, Viva, WypAll and Kimberly-Clark Professional, will be licensed to the venture by Kimberly-Clark under a long-term agreement. Kimberly-Clark's interests in Mexico and its joint venture in South Korea are outside the scope of this transaction. The business Kimberly-Clark is contributing to the venture generated approximately $3.3 billion of net sales in 2024.1 The transaction contemplates an implied current enterprise value for the business of approximately $3.4 billion, subject to certain purchase price adjustments at closing. The Company noted that, upon closing, the transaction is expected to be approximately $0.30-0.40 dilutive to Adjusted Earnings Per Share2 in the first full year following close, including the Company's expectation to return the initial cash proceeds from the transaction, net of taxes and transaction costs, to shareholders through share repurchases. The Company also noted its expectation to classify the IFP businesses included in the transaction as discontinued operations within its financial disclosures beginning with its second quarter earnings results. The Company currently anticipates reporting its second quarter and six months results by early August. The transaction is not subject to any financing contingency. At certain specified times and subject to certain conditions, Suzano will have the option to purchase Kimberly-Clark's remaining 49% ownership interest under an agreed valuation framework. The transaction is subject to the satisfaction of customary consultation requirements and closing conditions, including obtaining required regulatory approvals. The transaction has been unanimously approved by Kimberly-Clark's Board of Directors and is expected to close in mid-2026.