Kimberly-Clark Sells 51% of $3.4B Tissue Business to Suzano

Kimberly-Clark has announced a major shakeup in its global operations by entering a joint venture with Brazilian pulp and paper firm Suzano. Under the agreement revealed Thursday, Suzano will acquire a 51% controlling interest in Kimberly-Clark’s international tissue and paper products division, leaving Kimberly-Clark with a 49% minority stake.

This newly formed venture will manage Kimberly-Clark’s "International Family Care and Professional" (IFP) segment, which includes over 40 regional brands and generated $3.3 billion in revenue last year. The estimated value of the business stands at approximately $3.4 billion. While the new entity gains operational rights to numerous brands, major global names like Kleenex and Scott will be licensed to it, excluding Kimberly-Clark's markets in Mexico and South Korea.

The move is part of a broader effort by Kimberly-Clark to streamline its portfolio and pivot toward areas with greater growth potential and profitability. CEO Mike Hsu emphasized this strategic focus, stating, “Following years of deliberate investments that have strengthened both Kimberly-Clark and the IFP business, we’re excited to expand our partnership with Suzano and sharpen our focus on higher growth, higher margin segments.”

As part of the agreement, Suzano will also have the option to acquire Kimberly-Clark’s remaining 49% stake in the future, subject to specific terms and conditions. The transaction is expected to be finalized by mid-2026, pending regulatory approvals.

The announcement comes after Kimberly-Clark's first-quarter earnings surpassed expectations, though revenue figures came in below forecasts. The company also revised its full-year profit outlook, citing potential headwinds from tariffs.

Market reaction was mixed following the news. Kimberly-Clark’s shares fell roughly 2% in early Thursday trading, while Suzano’s U.S.-listed stock climbed 5%, reflecting investor optimism around Suzano’s growing global footprint.

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