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Suzano & Kimberly-Clark to Form Global Tissue Joint Venture
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Key Takeaways
Suzano will hold 51% of a $3.4B tissue joint venture with Kimberly-Clark, transaction to close in mid-2026.
The JV spans 22 plants across 14 countries with 1M-ton annual output and $3.3B in 2024 net sales.
Suzano will pay $1.734B in cash at closing, aligning with its strategy of scalable, efficient growth.
Suzano S.A. (SUZ - Free Report) and Kimberly-Clark Corporation (KMB - Free Report) announced that they would create a $3.4-billion joint venture that will manufacture consumer and professional tissue products. Suzano will own 51% of the new joint venture, while Kimberly-Clark will hold a 49% stake.
The move aligns with Suzano's strategy of value-driven growth, focusing on scalable operations.
Details on SUZ-KMB Joint Venture
The new company, incorporated in the Netherlands, will include 22 manufacturing facilities across 14 countries in Europe, Asia (including Southeast Asia), the Middle East, South America, Central America, Africa and Oceania. These facilities have a combined annual tissue production capacity of around 1 million tons and generated $3.3 billion in net sales in 2024.
The joint venture will market and distribute tissue products, such as toilet paper, napkins, paper towels and facial tissues, in more than 70 countries. The joint venture is expected to create more than 9,000 job opportunities.
The companies expect the deal to close in mid-2026.
Suzano is focused on investing in scalable businesses, wherein the company can capitalize on its strength in operational efficiency. SUZ acquired Kimberly-Clark’s Brazilian tissue business in 2023.
At closing, Suzano will pay $1.734 billion in cash, subject to standard post-closing adjustments.
Suzano’s Q1 Performance
In the first quarter of 2025, SUZ reported net sales of $1.97 billion, up from $1.91 billion in the prior-year quarter. It reported adjusted earnings of 87 cents in the quarter under review compared with the prior-year quarter’s earnings of 3 cents.
SUZ’s Stock Price Performance
Suzano shares have gained 5.9% in the past year compared with the industry's 18.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
SUZ currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) and SSR Mining Inc. (SSRM - Free Report) . Carpenter Technology currently sports a Zacks Rank #1(Strong Buy) and SSR Mining carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 11.1%. The Zacks Consensus Estimate for CRS’ 2025 earnings is pegged at $7.20 per share, which indicates year-over-year growth of 51.9%. Carpenter Technology shares have skyrocketed 111% in the last year.
SSR Mining has an average trailing four-quarter earnings surprise of 58.8%. The Zacks Consensus Estimate for SSRM’s 2025 earnings is pegged at $1.14 per share, implying year-over-year growth of 307%. SSRM stock has soared 88.6% in the last year.
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Suzano & Kimberly-Clark to Form Global Tissue Joint Venture
Key Takeaways
Suzano S.A. (SUZ - Free Report) and Kimberly-Clark Corporation (KMB - Free Report) announced that they would create a $3.4-billion joint venture that will manufacture consumer and professional tissue products. Suzano will own 51% of the new joint venture, while Kimberly-Clark will hold a 49% stake.
The move aligns with Suzano's strategy of value-driven growth, focusing on scalable operations.
Details on SUZ-KMB Joint Venture
The new company, incorporated in the Netherlands, will include 22 manufacturing facilities across 14 countries in Europe, Asia (including Southeast Asia), the Middle East, South America, Central America, Africa and Oceania. These facilities have a combined annual tissue production capacity of around 1 million tons and generated $3.3 billion in net sales in 2024.
The joint venture will market and distribute tissue products, such as toilet paper, napkins, paper towels and facial tissues, in more than 70 countries. The joint venture is expected to create more than 9,000 job opportunities.
The companies expect the deal to close in mid-2026.
Suzano is focused on investing in scalable businesses, wherein the company can capitalize on its strength in operational efficiency. SUZ acquired Kimberly-Clark’s Brazilian tissue business in 2023.
At closing, Suzano will pay $1.734 billion in cash, subject to standard post-closing adjustments.
Suzano’s Q1 Performance
In the first quarter of 2025, SUZ reported net sales of $1.97 billion, up from $1.91 billion in the prior-year quarter. It reported adjusted earnings of 87 cents in the quarter under review compared with the prior-year quarter’s earnings of 3 cents.
SUZ’s Stock Price Performance
Suzano shares have gained 5.9% in the past year compared with the industry's 18.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
SUZ currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) and SSR Mining Inc. (SSRM - Free Report) . Carpenter Technology currently sports a Zacks Rank #1(Strong Buy) and SSR Mining carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 11.1%. The Zacks Consensus Estimate for CRS’ 2025 earnings is pegged at $7.20 per share, which indicates year-over-year growth of 51.9%. Carpenter Technology shares have skyrocketed 111% in the last year.
SSR Mining has an average trailing four-quarter earnings surprise of 58.8%. The Zacks Consensus Estimate for SSRM’s 2025 earnings is pegged at $1.14 per share, implying year-over-year growth of 307%. SSRM stock has soared 88.6% in the last year.