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Suzano Recieves Approval to Complete Purchase of KimberlyClark Brazil Tissue Business

General News
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Suzano S.A. (“Company”), in compliance with the provisions of Law No. 6,404, dated as of December 15, 1976, as amended (“Brazilian Corporate Law”), of the Brazilian Securities Commission (“CVM”) Resolution No. 80, dated as of March 29th, 2022, and of CVM Resolution No. 44, dated as of August 23rd, 2021, in line with corporate governance best practices, and in addition to the information disclosed through the Notice to the Market dated October 24th, 2022, hereby informs its shareholders and the market in general that the Company received approval from the Administrative Council for Economic Defense (CADE) to proceed with the purchase of the Tissue business from KimberlyClark, which became final on the present date.

The main asset included in the Transaction consists of 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 and the trademark “NEVE”. Other global trademarks 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.

The acquisition of Kimberly-Clark’s Tissue assets in Brazil is aligned with the Company’s 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).

After approval by the Administrative Council for Economic Defense (CADE), without reservations, the conclusion of the deal is still subject to verification of other conditions precedent commonly practiced by the market in this type of transaction.

Lastly, Suzano reiterates its commitment to keep shareholders and the market in general informed about the progress of the Transaction.

Source: Suzano S.A.