Suzano to Acquire 51% of Kimberly-Clark’s International Tissue Business for $1.73bn

We see a positive credit impact as Suzano strengthens its position in the more stable tissue market while capitalizing on its cost advantage in pulp.

Suzano announced the acquisition of a 51% stake in a newly formed international tissue company through a $1.734 billion cash transaction with Kimberly-Clark, subject to certain adjustments. The agreement, disclosed on June 5, is expected to close in mid-2026 following regulatory approvals and the restructuring of assets by Kimberly-Clark in select jurisdictions. It contemplates an enterprise value of $3.4 billion for Kimberly-Clark’s International Family Care and Professional (IFP) business.

The new joint venture will be headquartered in the Netherlands and managed by Suzano International Holding B.V., Suzano’s Dutch subsidiary. It will oversee all manufacturing, distribution, and commercial operations of Kimberly-Clark’s “family care” and “professional” tissue businesses across more than 70 countries. The asset perimeter includes 22 manufacturing facilities across 14 countries, with a total annual capacity of 1 million tons. Suzano will retain majority control, while Kimberly-Clark will hold a 49% stake and continue to own its North American tissue operations and certain joint ventures excluded from the transaction.

Regional brands will be transferred to the joint venture, while five global brands including Kleenex and Scott will be licensed royalty-free for long-term use in the covered regions. The joint venture agreement includes a call option that gives Suzano the right to acquire the remaining 49% stake beginning three years after closing, with provisions for earlier execution under specific conditions.

EM Spreads take: We assess the credit impact of the transaction as positive for Suzano. The acquisition is strategically sound, as it improves the company’s scale and expands its presence in the more stable tissue market while leveraging its competitive cost advantage in pulp. It also supports Suzano’s broader transition from a pure commodity exporter to a vertically integrated global player with branded consumer exposure by reducing its significant reliance on market pulp. Over time, we believe successful execution of the acquisition could contribute to a more diversified and resilient business profile. We also think the structure of the transaction, which includes the joint venture, helps mitigate integration and execution risk by facilitating a smoother operational transition.