08:01 AM EDT, 06/05/2025 (MT Newswires) -- Kimberly-Clark ( KMB ) and pulp producer Suzano have agreed to form a $3.4 billion joint venture focused on manufacturing, marketing, and distribution of tissue products, Kimberly-Clark ( KMB ) and Suzano said in separate Thursday statements.

Suzano said it will pay Kimberly-Clark ( KMB ) $1.73 billion in cash for a 51% stake in the joint venture, while Kimberly-Clark ( KMB ) will own the remaining 49% stake. Suzano also said it will hold a call option to acquire Kimberly-Clark's ( KMB ) stake in the new business.

Kimberly-Clark ( KMB ) said it will contribute "substantially all the assets" of its International Family Care and Professional portfolio to the venture and the transaction puts the new business' implied current enterprise value at about $3.4 billion.

Kimberly-Clark ( KMB ) estimates the deal to be $0.30 to $0.40 dilutive to its adjusted earnings per share in the first full year after closing.

The companies expect to close the transaction in mid-2026.