By Brazil Stock Guide —Suzano said on Wednesday it completed the $1.3 billion acquisition of a controlling stake in Kimberly-Clark’s international tissue business, formally launching the Arbex joint venture and naming its board and senior management as the Brazilian pulp producer expands beyond its core pulp operations.
Suzano acquired 51% of FamPro Tissue Holdings B.V., which will be renamed Arbex, through its Dutch subsidiary Suzano International Holding B.V. The deal was settled after all closing conditions were met, the company said.
The transaction was completed with a payment of $1.3 billion, equivalent to R$6.7 billion. Arbex starts with about $1 billion in net debt, reflecting financing raised in connection with the deal. The price remains subject to customary adjustments.
Former Suzano Chief Executive Walter Schalka will chair Arbex’s board. The board will also include Carlos Aníbal Fernandes de Almeida Junior, Suzano’s executive vice president for Europe; Fabricio Bloisi, CEO of Prosus and Naspers and founder of iFood; and Kimberly-Clark executives Jeffrey Melucci and Nelson Urdaneta.
Ehab Abou-Oaf, who heads Kimberly-Clark’s International Family Care and Professional businesses, was named chief executive of Arbex. Suzano executive Luís Bueno will serve as chief operating officer, while Oscar Mousinho, a former finance executive at Mars and Kimberly-Clark, was named chief financial officer. Caroline Carpenedo will oversee people, sustainability, communications and corporate brand.
Suzano and Kimberly-Clark also signed the joint venture agreement governing Arbex’s control, management and operations, as well as transitional services, intellectual-property licensing and other commercial agreements designed to support business continuity after the closing.
The closing moves Suzano into the integration phase of one of its most important diversification bets. The company, already the world’s largest market pulp producer, is seeking greater exposure to higher-value consumer tissue products while keeping Kimberly-Clark as a strategic partner.
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