World's Largest Toilet Paper Pulp Manufacturer, Suzano, Announces Major Deal
Toilet paper is something that brings people together, in the sense that people use it all over the world. It's simply a basic need, and it's one that's often taken for granted until there's a big shakeup. Who can forget the toilet paper shortage in the U.S. during the pandemic, right?
Now, one of the world's biggest pulp producers has announced a deal with a U.S. company worth billions.
Suzano is a Brazilian pulp maker that dates back more than 100 years. "As the largest pulp manufacturer in the world, one of the largest paper producers in Latin America and the leader in the toilet paper segment in Brazil, we are part of the bioeconomy," Suzano says in a statement. "This drives us to develop sustainable, innovative and renewable products made from eucalyptus, which is planted and harvested by us for this purpose."
On April 5, Suzano and Kimberly-Clark, best known for being the maker of Kleenex, made a deal that sees the latter selling a majority stake in its international tissue business, valuing the business at about $3.4 billion. The deal now has Kimberly-Clark holding a 49% stake and Suzano paying around $1.73 billion for a 51% stake. The deal is slated to close in mid-2026.
Texas-based Kimberly-Clark also said Suzano will have the option, if they choose to take it, to purchase Kimberly-Clark's ownership interest under certain conditions.
"This transaction is a powerful step forward in the transformation strategy we laid out last year," Kimberly-Clark chairman and chief executive officer Mike Hsu said in a statement.
"Following years of deliberate investments that have strengthened Kimberly-Clark and IFP, we are excited to expand our partnership with Suzano and focus Kimberly-Clark's portfolio on our higher growth, higher margin businesses," Hsu added. "Together, this positions each business to move forward with clarity and seize the tremendous opportunities ahead. We are grateful to our global teams who have made this moment possible."
Related: Toilet Paper Could Be Irrelevant Soon—Here's Its Replacement