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Suzano completes purchase of Kimberly-Clark assets and becomes leader in the Brazilian tissue market

With the acquisition, the company now has a share of 24.3% of the toilet paper market in transacted value

Suzano, the world’s largest pulp producer, concluded, last Thursday, the 1st, the purchase of Kimberly-Clark’s tissue business in Brazil, which makes it the leader of the national toilet paper market in terms of transaction value, according to NielsenIQ. Data from March/April of this year indicate that Suzano’s market share, already considering the acquired brands, is 24.3%, equivalent to two percentage points above the runner-up.

The agreement between the companies includes a facility located in Mogi das Cruzes (São Paulo), with an installed capacity of approximately 130,000 tons per year, and ownership of the Neve and Grand Hotel brands. Other global brands used by Kimberly-Clark in the Brazilian market, such as Scott and Kleenex, in addition to the K-C Professional line, will be licensed to Suzano for a specified period.

Suzano entered the tissue sector in 2017 and, in six years of operation, the company has already reached second place in market volume.

“We are very confident that the geographical complementarity of brands and product categories resulting from this operation will allow us to be even closer to our customers and end consumers. This will be one of the many evolutions that we will be able to achieve from the union of so many talents,” says the executive director of Consumer Goods and Corporate Relations at Suzano, Luís Bueno.

The executive also points out that there is enormous potential for growth in this segment in Brazil – according to Fastmarkets RISI, per capita consumption of tissue is still low in Brazil compared to other countries. In 2021, the country recorded a consumption of 6.3 kg/inhabitant, while the United States added 26 kg/inhabitant, Chile, 14.5 kg/inhabitant and Mexico, 9.7 kg/inhabitant.

“We see a very relevant opportunity to develop the tissue market in Brazil, especially to reach the levels of our neighbors in Latin America. As part of this evolution, we are investing in innovation to bring high quality products to the market, in order to contribute to the migration and consolidation of double and triple ply toilet paper in the country”, emphasizes Bueno.

The agreement between Suzano and Kimberly-Clark was announced in October 2022 and received final approval from the Administrative Council for Economic Defense (Cade) in April of this year. The formalities foreseen for the conclusion of the transaction, including the segregation of Kimberly-Clark’s tissue assets, were finalized in the following weeks, as originally planned.

KIMBERLY-CLARK WILL FOCUS ON PERSONAL CARE

In a note, Kimberly-Clark confirmed the completion of the process of selling its tissue assets in Brazil to Suzano and reinforced that the country remains one of its most important markets, with a focus on its personal care brands.

“Data from Euromonitor and Nielsen point out that Brazil is the fourth personal care market in the world and that by 2025 there is a perspective of a 39% increase in consumption in terms of sales value in the personal care category. The company’s strategy for the country is focused on accelerating the pace of growth of its personal care brands: Huggies, Intimus and Plenitud,” said the multinational.

“In this way, Kimberly-Clark remains attentive to people’s needs, innovating and taking care of them in all stages of their lives. For this, the company invests in the development of a unique user experience in the Brazilian market, through an ecosystem of products and services relevant to consumers. Its brands will continue to offer better care for every occasion and life milestone,” K-C concluded.

Source
SuzanoKimberly-Clark
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