Kimberly-Clark Corp Announces Strategic Partnership with Suzano
Kimberly-Clark Corp’s stock price has declined following the announcement of a strategic partnership with Brazilian pulp maker Suzano.
The partnership involves the creation of a new joint venture, in which Kimberly-Clark will own a 49% stake, to manage its international tissue business. This move is part of the company’s efforts to focus on higher-growth and margin segments, such as personal care and North America tissue.
Key details of the partnership include:
- Deal value: approximately $3.4 billion
- Assets to be divested: 22 manufacturing facilities and around 9,000 employees
- Joint venture ownership: Kimberly-Clark will own 49% stake, with Suzano owning the remaining 51%
The partnership is expected to integrate Suzano’s operational expertise with Kimberly-Clark’s brand management, creating a preeminent international tissue and professional products company.