12:51 PM EDT, 06/05/2025 (MT Newswires) -- Kimberly-Clark ( KMB ) has agreed to form a $3.4 billion international tissue and professional products joint venture with Brazilian pulp producer Suzano (SUZ), the companies said Thursday.

Suzano will pay the Kleenex tissues maker about $1.73 billion in cash for a 51% stake in the venture, which will focus on the manufacturing, marketing and distribution of products, such as toilet paper and facial tissues in more than 70 countries.

Kimberly-Clark ( KMB ) will own a 49% interest and contribute substantially all the assets of its international family care and professional portfolio, which generated $3.3 billion in sales in 2024, to the venture. Suzano will have the option to acquire Kimberly-Clark's ( KMB ) holding in the venture at certain specified times and under certain conditions, the companies said.

Suzano's US-listed shares were up 7% in Thursday afternoon trade, while Kimberly-Clark ( KMB ) fell 1.9%.

"This transaction generates immediate returns and long-term shareholder value," Kimberly-Clark ( KMB ) Chief Financial Officer Nelson Urdaneta said. The company expects the deal to be dilutive to its adjusted earnings by $0.30 to $0.40 a share in the first full year after completion.

Kimberly-Clark ( KMB ) will retain its consumer tissue and professional businesses in the US and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.

"The partnership with Kimberly-Clark ( KMB ) ensures business operational continuity and an alignment towards operational efficiency opportunities, mitigating risks typically encountered during international expansion," Suzano CFO Marcos Assumpcao said.

The new business will be incorporated in the Netherlands and include 22 manufacturing facilities in 14 countries across the world, according to the firms.

More than 40 regional brands of Kimberly-Clark's ( KMB ) international family care and professional business will be transferred to the venture. The new entity will also gain licenses to the Scott, Kleenex, Viva, WypAll and Kimberly-Clark Professional brands under a long-term agreement.

The transaction requires approval from regulators and is subject to Kimberly-Clark ( KMB ) completing a reorganization of its consumer tissue and professional division. The deal for the venture is expected to close in the middle of 2026, the companies said.

Suzano bought Kimberly-Clark's ( KMB ) Brazilian tissue assets and brands in 2023.

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