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Suzano Announces Acquisition of Kimberly Clark Tissue Business in Brazil

General News
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Suzano S.A. (“Company”), hereby informs its shareholders and the market in general the execution, on October 24th, 2022, of an Equity Purchase Agreement entered into by and between the Company, as Buyer, Kimberly-Clark Brasil Indústria e Comércio de Produtos de Higiene Ltda. (“KC Brasil”), as Seller, and KimberlyClark Worldwide, Inc. (“KC”) as guarantor, for the acquisition, by the Company, subject to certain conditions precedent, of all the quotas held by KC Brasil in a new company that will be the holder of the assets related to the business of manufacturing, marketing, distributing and/or selling of tissue products, including toilet paper, paper towels, napkins, tissues, as well as other paper products in Brazil, including ownership of the brand “NEVE” (“Target Company”). As part of the deal, the other global brands currently used by KC Brasil will be licensed to the Company for a specific term (“Transaction”).

The main asset included in the Transaction consists on 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.

The Transaction is aligned with the Company’slong-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).

The Company informs that the Transaction does not have materiality to its financial leverage and/or indebtedness.

The conclusion of the Transaction is subject to the verification of conditions precedent commonly practiced by the market in this type of transaction, including the approval by the Administrative Council for Economic Defense (CADE), pursuant to Law No. 12.529 of November 30th 2011, as amended, and the conclusion of the corporate reorganization of KC Brasil for the incorporation and contribution of assets related to the tissues business in the Target Company. The Transaction does not depend on the approval of the Company’s General Shareholders’ Meeting, as it does not meet the parameters established in article 256 of the Brazilian Corporation Law.

Lastly, Suzano reiterates its commitment to keep shareholders and the market in general informed about the progress of the Transaction, as well as any other matter of interest to its shareholders and the market.

About Suzano

Suzano is a forestry based publicly held company, controlled by Suzano Holding and belonging to Group Suzano. Recognized for innovation and a pioneering spirit for over 90 years, Suzano is a 100% Brazilian company that is a global reference in the development of products made from planted eucalyptus forests and one of the largest vertically integrated producers of eucalyptus pulp and paper in Latin America. Its product portfolio includes coated and uncoated printing and writing paper, paperboard, tissue paper, market pulp and fluff Pulp.

Source: Suzano S.A.