Under the terms of the deal, the value of the division is estimated at $3.4 billion. Kimberly-Clark will own 49% of the shares of the new company. Suzano, the world's largest pulp supplier and a major paper manufacturer, will have a controlling stake of 51% and an option to purchase a share of Kimberly-Clark's ownership at specified times and under certain conditions.
Kimberly-Clark will contribute nearly all of the assets of its International Family Care and Professional business, which includes more than 40 regional brands and about 9,000 employees. Five of its global brands, including Scott and Kleenex, will be licensed to the business. The company expects the deal to be dilutive to earnings of 30 to 40 cents per share this year.
The deal, which is expected to close in mid-2026, is seen as part of the Dallas-based consumer goods giant's ongoing transformation strategy to drive growth, CEO Mike Xu said in a statement.
The international paper products business is the smallest of Kimberly-Clark's three major divisions, with annual sales of less than $3.5 billion, according to the WSJ. The division posted the lowest profit margin of the three, the newspaper reported.
Source: Bloomberg
