Brazil's Suzano & Kimberly-Clark unveil global tissue partnership
Suzano will pay Kimberly-Clark US$1.734 billion in cash for its 51 percent stake at the closing of the transaction, subject to certain customary post-closing purchase price adjustments. Closing of the transaction is contingent on, among other things, approval by regulatory and other governmental authorities, fulfillment of customary conditions precedent for transactions of this nature, and completion by Kimberly-Clark of a corporate reorganization of its Consumer Tissue and Professional business unit. The transaction is expected to close in mid-2026 and involves approximately 9,000 employees.
Suzano and Kimberly-Clark are forming a $3.4 billion joint venture to produce and market tissue products in over 70 countries. Suzano will acquire a 51 per cent stake for $1.734 billion. The venture includes 22 plants with 1 million tonnes annual capacity and 40+ brands. Closing is expected mid-2026. Suzano will hold majority control and has a call option to buy the remaining 49 per cent.
The new business will be a company incorporated in the Netherlands and will include 22 manufacturing facilities located in 14 countries across Europe, Asia, including Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania. Collectively, these facilities have an installed capacity to produce approximately 1 million tonnes of tissue a year. The assets to be included in the new joint venture generated net sales in 2024 of approximately US$3.3 billion.
Kimberly-Clark will retain its consumer tissue and professional businesses in the United States and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.
Beto Abreu, CEO of Suzano, said: 'This new company brings together two global players that are leaders in their respective markets, with complementary capabilities that combine Suzano's industrial expertise and operational management efficiency with Kimberly-Clark's know-how in brand management, marketing and commercialization of both regional and global brands, as well as its extensive experience in managing operations across multiple regions worldwide.
'Both companies share strong organizational cultures rooted in innovation and sustainability. We look forward to combining great talent, good assets, and tremendous brands that are trusted by consumers.'
Marcos Assumpção, CFO of Suzano , said: "This transaction reflects Suzano's disciplined approach to capital allocation with value creation and fully in line with our financial policy. Moreover, the partnership with Kimberly-Clark ensures business operational continuity and an alignment towards operational efficiency opportunities, mitigating risks typically encountered during international expansion."
Mike Hsu, Chairman and Chief Executive Officer at Kimberly-Clark , said: 'This transaction represents a powerful step forward in Kimberly-Clark's transformation journey. We are pleased to enter into a strategic partnership with Suzano, a leader in its field, and we look forward to working closely together to deliver on the significant opportunities ahead for our International Family Care and Professional Business.'
More than 40 regional brands of Kimberly-Clark´s International Family Care and Professional portfolio will be transferred into the joint venture, that will also enter into a long-term license with the new company for use of its global brands, including Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional.
The transaction is aligned with Suzano's long-term strategy of value-accretive growth with financial discipline, focusing on scalable businesses where the company can leverage its strength in operational efficiency.
Suzano is currently a leading player in toilet paper in Brazil, following the 2023 acquisition of Kimberly-Clark's Brazilian tissue assets and brands. Suzano is also in the process of building a new R$650 million (approximately US$115 million) tissue paper mill at its site in Aracruz in the state of Espírito Santo, which will add 60,000 tonnes of annual capacity to the company's Consumer Goods Business Unit.
Luis Bueno, Executive Vice President of Consumer Goods and Corporate Affairs at Suzano , said: "We have an excellent understanding of Kimberly-Clark ´s culture and internal processes, thanks to our 2023 acquisition of the Brazilian tissue business. We have already been able to achieve significant efficiency gains in these operations, which we are confident can be replicated in other regions.
'Our ability to achieve this goal is intrinsically tied to the tremendous quality of the talent within Kimberly-Clark ´s team, who have helped develop and grow iconic, innovative and trusted brands that are a part of the everyday lives of hundreds of millions of people around the world.'
At closing of the transaction, Suzano and Kimberly-Clark will enter into a joint venture agreement establishing certain rights and obligations related to the management, control, operation, shareholding, and other matters concerning the joint venture. It will have a Board of Directors with five members, three of whom will be appointed by Suzano and two of whom will be appointed by Kimberly-Clark. The Transaction also includes a call option for Suzano to acquire Kimberly-Clark's 49% interest in the new company. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Gujarat's semi-conductor push gains pace as CG Semi prepares to start production next week
Ahmedabad: Gujarat's semiconductor ambitions are moving from plans to production, with multiple projects hitting key milestones. CG Semi Pvt Ltd is set to begin pilot operations at its outsourced semiconductor assembly and testing (OSAT) facility in Sanand GIDC next week, said sources. The company has invested about Rs 7,600 crore in the project and will reportedly launch its qualification line next week, ahead of full-scale production targeted for 2026. Spread over 32 acres, the Sanand facility marks a major step in Gujarat's fast-expanding semiconductor ecosystem. Industry experts say Gujarat is seeing unprecedented momentum in chip-making. "The state, with its clear vision of becoming a semiconductor hub, has been successful in attracting the Tata Group's $10 billion semiconductor fabrication facility (FAB) in Dholera, which is already under construction and expected to begin production by the end of 2026," said Sudhir Naik, head (mid-west region) of India Electronics and Semiconductor Association (IESA). According to Naik, Gujarat is the only state in India to have four OSAT/ATMP/chip packaging plants: three in Sanand and one in Surat. "Surat-based Suchi Semicon has already begun production at its packaging plant. Within the next two years, all of these facilities are expected to commence large-scale operations, firmly positioning Gujarat on the global semiconductor map," he said. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad | Gold Rates Today in Ahmedabad | Silver Rates Today in Ahmedabad Alongside CG Semi, , a joint venture between CG Power and Industrial Solutions Limited, Renesas Electronics America Inc., and Stars Microelectronics (Thailand) Public Co. Ltd, other major projects are advancing rapidly. US-headquartered Micron Technology is at an advanced stage of completing its Sanand GIDC facility and is expected to start production either by the end of this year or early next year, said sources. Kaynes Semicon is also gearing up to launch production soon. Together, these investments represent a major leap in India's bid to build a robust semiconductor supply chain, with Gujarat emerging as its nucleus. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
NDTV
3 hours ago
- NDTV
Indian Envoy Meets US Lawmakers Amid Trade Tensions Over New Tariffs
Washington: Indian envoy Vinay Mohan Kwatra on Thursday met with prominent US lawmakers amid a strain in relations between Washington and New Delhi after President Donald Trump imposed 50 per cent tariffs on Indian goods. Kwatra met Representative Darrell Issa, Chairman of the House Judiciary GOP Subcommittee on Intellectual Property, AI and the Internet, and discussed key elements in the US-India ties, "including our partnership in energy security and mutually beneficial trade engagement". Kwatra, in a social media post, said he was grateful for Issa's steadfast support of the India-US ties as Vice-Chair of the House Foreign Affairs Committee Majority. The Indian ambassador also had an "engaging conversation" with Representative Adam Smith, Ranking Member of the House Armed Services Democrats. Kwatra said he discussed India's perspectives on advancing mutual trade, energy and defence cooperation between the two countries. In a separate meeting with Senator John Cornyn, Co-Chair of the India Caucus in the US Senate, the envoy discussed issues of mutual interest and highlighted the importance of bilateral trade engagement. "We also discussed enhancing bilateral cooperation further in hydrocarbons, particularly between Texas and India," Kwatra posted on X. On Wednesday, the Indian envoy met Congressman Andy Barr, Chairman of the House Subcommittee on Financial Institutions and Monetary Policy of the Financial Services GOP, and discussed the possibilities of enhancing bilateral trade and investment partnership. Kwatra also thanked him for his leadership and consistent support for the relationship as Vice-Co-Chair of the India Caucus in the House of Representatives. In the last few days, the Indian ambassador to the US has held a series of meetings with US Congressmen Warren Davidson, Marc Veasey and Michael Baumgartner. The series of meetings comes amid a strain in ties between the US and India after Trump imposed 50 per cent tariffs on Indian goods, including a penalty of 25 per cent for New Delhi's purchases of Russian crude oil. India has called the tariffs "unjustified and unreasonable". India said that, like any major economy, it will take all necessary measures to safeguard its national interests and economic security.
Time of India
3 hours ago
- Time of India
Wipro to buy Harman's DTS business for $375 million
Bengaluru: Indian IT major Wipro entered into an agreement to acquire the Digital Transformation Solutions (DTS) business unit of Harman, a Samsung company, for $375 million. The deal will accelerate Wipro's mission to deliver next-generation engineering research and development (ER&D) services. The transaction, signed on Thursday, marks one of Wipro's largest acquisitions in the ER&D space. Through this deal, Wipro will gain full ownership of DTS, a US-based global provider of ER&D and IT services. This acquisition significantly expands Wipro's ER&D capabilities, strengthening its AI-driven digital and device engineering services—from design to manufacturing—across key sectors such as technology, industrial, aerospace, healthcare, and consumer industries. As part of the acquisition, the Bengaluru-headquartered firm will enter into a multi-year strategic agreement with Harman and Samsung, further deepening the relationship and creating new avenues for joint growth and transformation. Upon completion of the acquisition, DTS will be integrated into Wipro's engineering global business line. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru | Gold Rates Today in Bengaluru | Silver Rates Today in Bengaluru Wipro CEO Srini Pallia said, "Their specialised engineering expertise, combined with Wipro's consulting-led, AI-powered capabilities, will significantly enhance the value we deliver to clients. DTS's strong presence in high-growth sectors and strategic markets complements our global footprint and strengthens our position as a trusted transformation partner. Together, we'll accelerate digital innovation, reduce time-to-market, and sharpen competitive advantage. " The acquisition will be completed through a cash consideration, with closure expected by the end of this year, subject to regulatory and antitrust approvals in the United States and other jurisdictions. By combining DTS's personalised, high-touch service model with Wipro's global scale, robust technology ecosystem, and deep resources, the deal offers clients the best of both worlds: the agility and specialisation of a niche provider, alongside the reach and capabilities of a global leader. Its ER&D offerings include embedded software, digital engineering, design thinking, and device engineering, while its IT services span cloud and infrastructure, data analytics and AI, enterprise automation, and customer experience. The company operates in 14 countries, including India, the US, South Korea, the UK, Poland, and Germany, with a workforce of over 5,600 employees. DTS reported consolidated revenues of $315 million in calendar year 2022, $308 million in 2023, and $314 million in 2024. In 2024, approximately 85% of the revenue came from services, with the remaining 15% from products. Christian Sobottka, CEO of Harman, said, "This agreement unlocks the next chapter for the DTS business unit—one where it can scale faster, reach more clients in key industries, and fully realise its growth potential. As part of Wipro, a company with deep engineering prowess, DTS will have the complementary capabilities and ecosystem needed to expand its impact and accelerate the value it delivers to customers." Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
