Suzano, Kimberly-Clark Form $3.4B Global Tissue Joint Venture

• New joint venture will be the owner of Kimberly-Clark's international tissue assets, including 22 manufacturing facilities, approximately 9,000 employees, and marketing and selling regional and global brands, such as Kleenex, Scott and WypAll in over 70 countries.
• The strategic partnership will integrate Suzano's industrial and operational expertise with Kimberly-Clark´s brand management and international experience across a range of markets.

Suzano, the world's largest pulp producer, and Kimberly-Clark, a global leader in the consumer staples industry, today announced the creation of a US$3.4 billion joint venture focused on the manufacture, marketing and distribution of consumer and professional tissue products, such as toilet paper, napkins, paper towels and facial tissues in over 70 countries. Suzano will acquire a 51 percent interest in the new entity, with Kimberly-Clark holding a 49 percent interest.

Suzano will pay Kimberly-Clark US$1.734 billion in cash for its 51 percent stake at the closing of the transaction, subject to certain customary post-closing purchase price adjustments. Closing of the transaction is contingent on, among other things, approval by regulatory and other governmental authorities, fulfillment of customary conditions precedent for transactions of this nature, and completion by Kimberly-Clarkof a corporate reorganization of its Consumer Tissue and Professional business unit. The transaction is expected to close in mid-2026 and involves approximately 9,000 employees.

The new business will be a company incorporated in the Netherlands and will include 22 manufacturing facilities located in 14 countries across Europe, Asia, including Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania. Collectively, these facilities have an installed capacity to produce approximately 1 million tonnes of tissue a year. The assets to be included in the new joint venture generated net sales in 2024 of approximately US$3.3 billion.

Kimberly-Clark will retain its consumer tissue and professional businesses in the United States and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.