Prnewswireยท2025-06-05 11:00Core Insights - Kimberly-Clark has formed a strategic partnership with Suzano to create a leading international tissue and professional products company, focusing on higher growth and margin segments [1][2][3] - The new venture will allow Kimberly-Clark to enhance its operational efficiency and improve its growth trajectory by concentrating on its iconic global brands [3][4] - The transaction is expected to generate significant shareholder returns through upfront cash proceeds and share repurchases [3][4][6] Company Strategy - The partnership sharpens Kimberly-Clark's focus on proprietary spaces that enhance growth, with approximately two-thirds of net revenues projected to come from personal care categories post-transaction [3][4] - The collaboration with Suzano is anticipated to reduce product costs and improve supply chain efficiency, benefiting both consumers and customers [3][4] Financial Details - Kimberly-Clark will contribute its International Family Care and Professional (IFP) business, which generated approximately $3.3 billion in net sales in 2024, to the new venture [5][6] - The implied enterprise value for the IFP business is approximately $3.4 billion, subject to adjustments at closing [6] - The transaction is expected to be dilutive to Adjusted Earnings Per Share by approximately $0.30-0.40 in the first full year following the close [7][8] Operational Impact - The new venture will encompass sales in over 70 countries, 22 manufacturing facilities, and around 9,000 employees, with more than 40 regional brands being owned by the new entity [5][6] - Kimberly-Clark's interests in Mexico and its joint venture in South Korea are excluded from this transaction [5] Timeline and Approvals - The transaction has been unanimously approved by Kimberly-Clark's Board of Directors and is expected to close in mid-2026, pending regulatory approvals [10]