Kimberly-Clark nearing $3.5 billion sale of international tissue business

Kimberly-Clark Corporation is on the verge of finalizing a significant transaction involving the sale of its international tissue business, which includes well-known brands like Kleenex. The estimated value of this deal is approximately $3.5 billion and is poised to be acquired by Brazilian pulp manufacturer Suzano . This divestiture represents a strategic shift for Kimberly-Clark, positioning the company to focus more intensively on its core markets and higher-margin products.

Kimberly-Clark (NYSE: KMB) is strategically repositioning by divesting its Kleenex and tissue operations outside of North America. The anticipated sale to Brazilian company Suzano for roughly $3.5 billion marks a significant shift, allowing Kimberly-Clark to refocus on its more profitable segments. Concurrently, Suzano aims to enhance its presence in the global tissue market through this acquisition.

Royal Golden Eagle (RGE), and Asia Pulp & Paper Co (APP) were the final bidders for Kimberly-Clark's international tissue business, valued at approximately $4 billion, according to a Reuters report in April.

Kimberly-Clark put the unit, which generates around $500 million in annual EBITDA, up for sale as part of a restructuring initiated last year.

The sale is occurring as U.S. President Donald Trump's trade tariffs impact Kimberly-Clark's business outlook, leading the company to cut its annual profit forecast in April due to increased costs.

Suzano acquired Kimberly-Clark's tissue paper operations in Brazil for an undisclosed sum.The deal to sell the international tissue business has attracted strong interest, reflecting the unit's profitability despite the challenging market conditions. Suzano's previous acquisition of Kimberly-Clark's Brazilian tissue operations suggests a strategic interest in expanding its presence in the sector. RGE, a Singapore-based conglomerate, and APP, an Indonesian pulp and paper giant, also bring significant resources and industry expertise to the bidding process. The outcome of the sale remains uncertain, but it is expected to have a significant impact on the global tissue market landscape.

The decision to divest this segment aligns with Kimberly-Clark’s broader corporate strategy aimed at streamlining operations and enhancing financial performance. Notably, the international tissue division contributes less than $3.5 billion in annual net sales and has been characterized by lower profit margins compared to other segments. By selling this division, Kimberly-Clark can allocate resources more efficiently toward areas that promise greater returns.

This impending sale reflects ongoing trends within the consumer goods industry where companies are increasingly consolidating their portfolios to remain competitive in dynamic markets. As firms like Kimberly-Clark reassess their operational focuses, such transactions highlight the importance of strategic realignment in achieving long-term sustainability and growth .

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Sara H

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