Latest news with #Kimberly-Clark
Yahoo
7 hours ago
- Business
- Yahoo
Warren officials considering forming Joint Economic District with nearby township
WARREN, Ohio (WKBN) — The City of Warren is exploring a new way to boost economic development by partnering with a nearby township to create a Joint Economic District. The move could pave the way for major improvements in the area, all with an eye toward a major player — Kimberly-Clark, which announced it will build a manufacturing plant in Warren last month. Ohio Laws allow municipalities and townships to join forces and identify prime property for development and even tax themselves to fund improvements. In Warren's case, the city would serve as the municipal partner, supplying water and sewer services, while the district itself would do things like road work, powerline relocations and building new access roads for truck traffic. 'The JED is obviously a creature of statute, and it allows for municipalities and neighboring townships or township to work together where one has something and the other lacks it, and you kind of come together for this purpose,' said Warren Law Director Enzo Cantalamessa. City officials say Kimberly-Clark expects the project to take two to two-and-a-half years to complete, making the partnership a key step in delivering the infrastructure and services necessary for the company's expansion. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
Brazil's Suzano & Kimberly-Clark unveil global tissue partnership
Suzano, the world's largest pulp producer, and Kimberly-Clark, a global leader in the consumer staples industry, announced the creation of a US$3.4 billion joint venture focused on the manufacture, marketing and distribution of consumer and professional tissue products, such as toilet paper, napkins, paper towels and facial tissues in over 70 countries. Suzano will acquire a 51 percent interest in the new entity, with Kimberly-Clark holding a 49 percent interest. 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)
Yahoo
4 days ago
- Business
- Yahoo
Kimberly-Clark, Suzano form $3.4B tissue joint venture
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Kleenex tissue maker Kimberly-Clark and pulp producer Suzano are forming a $3.4 billion global consumer and professional tissue joint venture in an effort to bolster their long-term growth strategies, the companies announced Thursday. Suzano has agreed to pay the tissue manufacturer $1.7 billion to acquire 51% of the new entity, which will be based in the Netherlands. The deal includes 9,000 employees and 22 manufacturing facilities across Europe, Asia, the Middle East, South and Central America, Africa and Oceania. Kimberly-Clark will own the remaining 49% and retain its consumer and professional entities in the United States, as well as existing joint ventures in Mexico, South Korea and Bahrain, among other countries. The transaction is expected to close in mid-2026. The joint venture is part of Kimberly-Clark's long-term growth strategy introduced last year, Chairman and CEO Mike Hsu said in a statement. The plan aims to save the company more than $3 billion through improved productivity and accelerate the growth of its brands and businesses, particularly its North America and international personal care segments. More than 40 of Kimberly-Clark's regional brands under its international family care and professional portfolio will be transferred into the joint venture. Additionally, Suzano plans to enter a long-term license with the new company for the use of global brands, including Kleenex, Scott, Cottonelle, WypAll, Viva and Kimberly-Clark Professional, the Brazil-based pulp producer said in its press release. The deal follows Suzano's acquisition of Kimberly-Clark's Brazilian tissue assets and brands in 2023, the paper maker said in its release. The pending transaction aligns with Suzano's long-term cost-effective and growth strategy that's focused on scalable businesses where it can strengthen its operational efficiency. Once the deal closes, approximately two-thirds of Kimberly-Clark's net revenues will come from its personal care categories, progressing its long-term growth, profitability and returns on investment, according to the tissue maker's press release. The joint venture is expected to reduce Kimberly-Clark's exposure to volatile input costs, improving the company's ability to deliver expected and deliverable margins and profitability over time. Kimberly-Clark anticipates $300 million in additional costs from tariffs this year, Hsu said in his remarks during an April earnings call. The majority of products sold in the U.S. are sourced and domestically produced, Kimberly-Clark CFO Nelson Urdaneta said in the earnings call. In terms of raw materials and finished goods, the company's exposure to China, Mexico and Canada was around or less than 10% of its total cost of goods. 'If we factor in all of our raw materials and finished goods imports for our US business, 80% of our total costs in the U.S. are U.S.-based, so only 20% of our U.S. costs are exposed to tariffs,' Urdaneta said. The volatile tariff backdrop is affecting Kimberly-Clark on three fronts. The 145% duty on China drives about two-thirds of the $300 million, Urdaneta said. The U.S.'s reciprocal tariffs account for 10% and retaliatory tariffs from other countries represent 25% of the impact costs, he added. The company is working fast to mitigate the costs, Urdaneta said. Still, he added that Kimberly-Clark is in a much better position to handle many of these headwinds. 'You can't solve that overnight because we're having to reaccommodate some of the elements of our supply chain, and we intend to already be able to address about a third of the impact this year,' Urdaneta said. 'Now it'll take us through 2026 to pretty much be able to address the whole element in a consistent manner based on what's been enacted today.' The joint venture is one of many actions Kimberly-Clark has taken to make progress on its strategy and alleviate tariff costs. Last month, the Scott paper towel maker announced plans to invest more than $2 billion over the next five years in its North America segment, expanding its U.S. manufacturing capacity and modernizing its supply chain. Recommended Reading Kimberly-Clark to invest over $2B in US operations
Yahoo
5 days ago
- Business
- Yahoo
Suzano says it is not taking on debt to finance Kimberly-Clark deal
SAO PAULO (Reuters) -Brazilian pulp maker Suzano will finance its $1.73 billion acquisition of a 51% stake in Kimberly-Clark's international tissue business from cash reserves without needing additional financing, executives said on Thursday. CEO Beto Abreu told Reuters the deal, announced on Thursday, will have an "almost imperceptible" impact on the company's debt levels. Chief Financial Officer Marcos Assumpcao said Suzano has sufficient cash reserves to complete the transaction without debt. Shares in Suzano were up 6.5%, making it the biggest gainer in Brazil's benchmark stock index Bovespa, which fell 0.3% at around 3 p.m. local time (1800 GMT). Suzano expects to close the deal by mid-2026. The company will also have the option to purchase Kimberly-Clark's remaining ownership interest, starting three years after the closing without expiration. Abreu said Suzano chose to structure the deal as a joint venture rather than outright acquisition to reduce risks, avoid taking on debt and combine strengths with Kimberly-Clark. The joint venture will be incorporated in the Netherlands and will include 22 manufacturing facilities across Europe, Asia, Middle East, South and Central America, Africa and Oceania. The venture's leaders will be based in Europe and Suzano plans to focus now on developing its management structure, Abreu said. Suzano plans to pause acquisitions while it concentrates on optimizing existing business operations, he said. Itau BBA said that the joint venture structure reduces Suzano's execution risks in different geographies. JP Morgan said the joint venture will enable Suzano to scale, becoming the eighth-largest global tissue producer.
Yahoo
5 days ago
- Business
- Yahoo
Kimberly-Clark To Sell Majority of $3.4B Global Tissue Business
Kimberly-Clark said Thursday that it agreed to create a new venture with Brazilian paper products firm Suzano. Suzano will own a 51% stake in the company's international tissue and paper products business, while Kimberly-Clark owns the remaining 49%. The Kleenex and Huggies parent said earlier this year it was looking to focus on higher growth businesses with higher profit (KMB) on Thursday announced a partnership with Brazilian pulp and paper producer Suzano (SUZ) to split ownership of Kimberly-Clark's international tissue and paper products business. The parent company of Cottonelle toilet paper and Huggies diapers said Thursday it will own a 49% stake in the business, which Kimberly-Clark named its "International Family Care and Professional" (IFP) segment in a restructuring effort earlier this year, with Suzano owning the majority 51% stake. The international tissue business Kimberly-Clark is offering up generated about $3.3 billion in sales in 2024, the company said, valuing it currently at about $3.4 billion. The IFP segment has more than 40 regional brands that the new venture will own the rights to, while five global brands like Kleenex and Scott's paper towels will be licensed to the venture, excluding Kimberly-Clark's operations in Mexico and South Korea. "Following years of deliberate investments that have strengthened Kimberly-Clark and IFP, we are excited to expand our partnership with Suzano and focus Kimberly-Clark's portfolio on our higher growth, higher margin businesses," Kimberly-Clark CEO Mike Hsu said. Suzano will later have the chance to potentially buy out Kimberly-Clark's 49% stake "at certain specified times and subject to certain conditions," the companies said. The deal announced Thursday is expected to close by the middle of next year. Kimberly-Clark's first quarter profits had topped estimates while sales fell short. When the company reported its results in April, it also lowered its full-year profit forecasts to account for the potential impact of tariffs. Shares of Kimberly-Clark were down about 2% in early trading Thursday, while Suzano's U.S.-listed shares jumped 5%. Read the original article on Investopedia
