Kimberly-Clark Nears $3.5B Sale of Global Kleenex Business to Suzano

Kimberly-Clark is reportedly close to selling its Kleenex and international tissue operations to Brazil’s Suzano for approximately $3.5 billion, according to sources cited by The Wall Street Journal. The deal, expected to finalize as soon as Thursday, marks a strategic move in Kimberly-Clark’s global restructuring efforts.

The divestiture excludes North American operations and focuses on the company’s tissue businesses in other regions. The unit, generating around $500 million in annual EBITDA, was put up for sale in 2023. Kimberly-Clark’s goal has been to streamline its global operations amid rising costs and shifting market conditions.

In April, Reuters reported that Suzano, Royal Golden Eagle (RGE), and Asia Pulp & Paper (APP) were the final contenders for the international tissue division, which had been valued near $4 billion. Suzano, a major pulp and paper producer, previously acquired Kimberly-Clark’s Brazilian tissue operations in 2022.

The latest sale aligns with Kimberly-Clark’s strategy to focus on core markets as inflation and trade tariffs—particularly those imposed during President Donald Trump’s administration—have pressured profit margins. The company revised its annual earnings outlook in April due to elevated raw material and production costs tied to the tariffs.

Neither Kimberly-Clark (NYSE:KMB) nor Suzano responded to immediate requests for comment.

This move could significantly boost Suzano’s global footprint, particularly in the consumer tissue segment, while helping Kimberly-Clark reallocate resources and strengthen its position in the North American market. As global competition in consumer goods intensifies, strategic portfolio realignments like this one are expected to continue.

This high-profile acquisition highlights ongoing consolidation trends in the pulp and paper industry, with leading firms seeking economies of scale and global market share.