Suzano on Oct. 24 announced that it has entered an Equity Purchase Agreement with Kimberly-Clark to purchase Kimberly-Clark's Brazilian tissue paper manufacturing and distribution assets ("KC Brasil"), including ownership of the brand "NEVE".
Terms of the deal were not disclosed.
A new company created by Suzano will hold the assets, as well as manufacture and distribute the tissue products.
As part of the deal, the other global brands currently used by KC Brasil will be licensed to the Company for a specific term.
The main asset included in the deal includes a tissue production plant, located in the municipality of Mogi das Cruzes, in the State of São Paulo, with an annual production capacity of approximately 130 thousand tons.
Suzano said the acquisition is aligned with its long-term strategy to "advance in the links of the value chain", as is widely public knowledge, representing geographic complementarity and synergy gains with its current consumer goods business (tissue).
New Tissue Mill Planned
At the end of June this year, Suzano announced plans to build a tissue mill with converting operations in the municipality of Aracruz, state of Espírito Santo, Brazil. The new plant will have the capacity to produce sixty thousand (60,000) tons per year of tissue, which would then be converted into tissue and towel products.
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