Kimberly-Clark is sharpening its focus on digital growth and higher-margin categories with a $3.4 billion joint venture that spins off its international tissue and professional products business to Brazilian pulp giant Suzano.
Under the deal, Suzano will hold a 51% stake in the new global tissue company, while Kimberly-Clark retains 49%. The venture includes 22 manufacturing sites, 9,000 employees, and licensing rights to major brands like Kleenex, Scott, Viva, and Kimberly-Clark Professional.
The move allows Kimberly-Clark to exit slower-growth regions and concentrate on North American and personal care markets—segments increasingly dominated by ecommerce, digital subscriptions, and retail media strategies.
“This transaction is a powerful step forward in the transformation strategy we laid out last year,” said CEO Mike Hsu. “It positions both Kimberly-Clark and the joint venture to move forward with clarity and seize digital growth opportunities.”
The spinoff of the International Family Care and Professional unit (IFP)—which generated $3.3 billion in 2024 revenue across 70+ countries—simplifies Kimberly-Clark’s operations. In turn, the company plans to ramp up digital investment in categories like diapers, incontinence, and feminine care.
“Consumers are already shifting how and where they buy these products,” said a company executive. “This deal helps us move faster and smarter across digital channels.”
Kimberly-Clark will focus on scaling direct-to-consumer platforms, enhancing AI-driven personalization, and expanding omnichannel fulfillment capabilities in its core product lines.
The new joint venture will operate independently and include:
- Markets across Latin America, EMEA, and parts of Asia
- More than 40 brands
- 22 plants and 9,000 employees
- Global licensing for five flagship brands
Kimberly-Clark’s operations in Mexico and South Korea are excluded. Suzano has an option to acquire the remaining 49% stake later. The deal is expected to close by mid-2026, subject to regulatory approval.
Kimberly-Clark will receive significant cash proceeds, which are earmarked for share repurchases. The company will begin reporting the IFP unit as discontinued operations starting in Q2 2025.
Analysts say the deal is part of a larger CPG trend: narrowing focus to modernize and digitize operations.
“It’s a strategic reset,” said one analyst. “Kimberly-Clark is aligning itself with digital-first growth in personal care, where it has pricing power and room to scale.”
The partnership with Suzano also brings supply chain advantages. Executives say it will lead to faster lead times, lower input costs, and improved demand forecasting through better alignment of digital demand and physical manufacturing.
“This generates both immediate returns and long-term shareholder value,” said chief financial Nelson Urdaneta.
After the close, Kimberly-Clark will derive two-thirds of its revenue from personal care. Though the deal may initially reduce earnings per share by $0.30 to $0.40, the company expects digital-led growth to more than offset the hit over time.
Hsu summed up the shift as more than a portfolio move:
“This isn’t just a divestment—it’s a recommitment to where we win and how consumers buy today.”
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