Kimberly-Clark’s $4 billion global tissue division poised for three-way M&A battle, sources reveal

Kimberly-Clark is currently in the midst of a $4 billion international tissue unit sale that has attracted three final bidders – Royal Golden Eagle (RGE) and Asia Pulp & Paper Co (APP) from Southeast Asia, as well as Brazil’s Suzano SA, according to sources familiar with the matter. These companies are conducting due diligence on the business and are expected to submit binding bids by mid-May.

Goldman Sachs and Centerview Partners have been hired by Kimberly-Clark to oversee the sale process. The international tissue unit, which was put up for sale as part of a restructuring initiative launched by Kimberly-Clark last year, generates approximately $500 million in annual earnings before interest, taxes, depreciation, and amortization (EBITDA).

Despite the challenging business environment created by U.S. President Donald Trump’s trade tariffs, Kimberly-Clark’s international tissue business is projected to remain unaffected. In fact, the recent weakening of the U.S. dollar against other major global currencies has positively impacted the business, as reported by sources close to the matter.

Royal Golden Eagle (RGE) is aggressively pursuing the acquisition as part of its strategy for significant global expansion through potential acquisitions. Owned by Indonesian billionaire Sukanto Tanoto, RGE emerged victorious over Asia Pulp & Paper Co in 2023 by acquiring a 52% stake in Vinda, a Hong Kong-listed tissue and diaper manufacturer, for $3.4 billion.

On the other hand, Suzano SA, a Brazilian pulp producer, is also eyeing growth opportunities through acquisitions. Suzano had expressed interest in acquiring assets to drive growth in a statement to investors last year. Although Suzano engaged in negotiations to acquire International Paper in 2024, the deal ultimately fell through, estimating an agreement worth around $15 billion.

In a strategic move in 2022, Suzano had successfully sealed a deal to purchase Kimberly-Clark’s tissue paper operations in Brazil for an undisclosed amount. Kimberly-Clark had already disclosed plans in March last year to reorganize its business operations to streamline processes and reduce costs.

As the final bids for Kimberly-Clark’s international tissue unit are expected to be submitted soon, the outcome of the three-way acquisition battle between RGE, APP, and Suzano SA remains to be seen. The sale of the business represents a significant transaction in the international market and could potentially reshape the landscape of the tissue industry.