Kimberly-Clark, a global consumer products giant, announced that it will sell a majority stake in its International Home Care & Professional (IFP) business to Brazilian pulp giant Suzano, and the two parties will establish a joint venture. Kimberly-Clark will hold a 49% stake and Suzano will hold a 51% stake, thereby accelerating the strategic transformation of its high-profit business.
The cooperation involves Kimberly-Clark's IFP business covering more than 70 countries, including 22 factories and approximately 9,000 employees. The joint venture will own more than 40 regional brands under IFP and obtain the right to use Kimberly-Clark's globally renowned brands (such as Kleenex, Scott, Viva, WypAll and Kimberly-Clark Professional). Kimberly-Clark's business in Mexico and South Korea is not included in the transaction.
The transaction is valued at approximately $3.4 billion. Kimberly-Clark plans to treat the transaction as "discontinued operations" and will return a large amount of cash to shareholders for stock repurchases after the transaction is completed. The transaction is expected to be completed in mid-2026.
Kimberly-Clark said that the cooperation will improve supply chain efficiency, reduce costs, and expand brand and private label coverage in international markets. In the future, the company will focus more on the North American and international personal care markets, so that nearly two-thirds of its revenue will come from personal care categories with higher profit margins.
Kimberly-Clark Chairman and CEO Mike Hsu pointed out: "This is an important step in the transformation strategy we proposed last year. The cooperation with Suzano will unleash the potential of IFP and allow Kimberly-Clark to focus on core businesses with faster growth and higher returns."
Through this transaction, Kimberly-Clark not only optimized its business structure, but also enhanced the predictability of earnings. As the world's largest fiber manufacturer, Suzano's industrial chain advantages will further enhance the competitiveness of the joint venture in the global paper market.