(Reuters) -Kimberly-Clark on Thursday struck a deal with Brazilian pulp maker Suzano to sell a majority stake in its international tissue business, valuing the business at about $3.4 billion, the Kleenex tissue maker said.
The deal, structured as a strategic partnership, will form a new joint venture in which Kimberly-Clark would own a 49% stake, while Suzano would own the rest.
The Brazilian company will pay Kimberly-Clark about $1.73 billion in cash for the 51% stake at the closing of the transaction, which is expected in the mid-2026.
Suzano will have the option to purchase Kimberly-Clark’s ownership interest at certain specified times and subject to certain conditions, the Irving, Texas-based company said.
Kimberly-Clark, which has been struggling with weak sales, has been taking efforts to reorganize its businesses to simplify operations and cut costs as it looks to focus on more profitable parts such as personal care and North America tissue segments.
The combined business entity would be incorporated in the Netherlands and include 22 manufacturing facilities located in 14 regions such as Europe, Asia, Middle East, Central America.
As part of the new joint venture, Kimberly Clark will retain its consumer tissue and professional businesses in U.S. and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi Majumdar and Shailesh Kuber)
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