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- Kimberly-Clark said Thursday that she had agreed to create a new company with the Brazilian SUZANO paper products company.
- Suzano will hold a 51% stake in the international activity of tissue and paper products, while Kimberly-Clark holds the remaining 49%.
- Kleenex and Huggies parent said earlier this year that he was trying to focus on higher companies with higher beneficiary margins.
Kimberly-Clark (Kmb) announced on Thursday a partnership with the Brazilian producer of pulp and Suzano paper (Suz) to divide the property of the international activity of fabric and paper products from Kimberly-Clark.
The mother company of Cottonelle Toilet Paper and Hugies Diapers said on Thursday that it would hold a 49% stake in the company, that Kimberly-Clark appointed its “Family Care and Professional” (IFP) segment in a segment restructuring effort earlier this yearSuzano with the majority of 51%.
The activity of International Kimberly-Clark fabric offers a generation of around $ 3.3 billion in sales in 2024, said the company, currently valuing it at around $ 3.4 billion. The IFP segment has more than 40 regional brands to which the new company will hold the rights, while five world brands like Kleenex and Scott’s Paper Towels will be granted under license to the company, excluding Kimberly-Clark operations in Mexico and South Korea.
The CEO says that Kimberly-Clark focuses on “higher growth, higher margin companies”
“After years of deliberate investments that have strengthened Kimberly-Clark and IFP, we are delighted to expand our partnership with Suzano and Focus Portfolio in Kimberly-Clark on our higher growth margin companies,” said Kimberly-Clark CEO Mike Hsu.
Suzano will later have the possibility of potentially buying the participation of 49% of Kimberly-Clark “at certain times specified and subject to certain conditions,” said companies. The agreement announced Thursday should end by next year.
Kimberly-Clark Profits of the first trimester had exceeded the estimates while sales fell. When the company announced its results in April, it also reduced its full -year profits to take into account the potential impact of prices.
Kimberly-Clark’s shares fell by around 2% at the start of negotiations on Thursday, while the shares listed by Suzano jumped 5%.