Kimberly-Clark has announced the acquisition of Kenvue, the maker of Tylenol, in a cash-and-stock deal valued at more than $40 billion. The move has created a consumer products powerhouse, bringing together some of the world’s most familiar personal care and health brands.
As per media reports, the transaction has valued Kenvue at about $48.7 billion, with shareholders receiving approximately $21 per share, including $3.50 in cash and the remainder in Kimberly-Clark stock. Executives from both companies have stated that the merger has been aimed at leveraging their complementary strengths to accelerate growth and expand global reach.
Kimberly-Clark, known for brands such as Kleenex, Huggies, and Scott, has now added Kenvue’s extensive portfolio, including Tylenol, Band-Aid, Benadryl, Zyrtec, Neutrogena, and Aveeno, to its portfolio. Together, the firms have been projected to generate around $32 billion in sales this year.
Kenvue, which had been spun off by Johnson & Johnson in 2023, has been struggling with declining demand and investor pressure. Its stock has dropped nearly 30% over the past year amid growing competition from lower-cost alternatives. The company has also faced reputational challenges after the Trump administration linked Tylenol use during pregnancy to autism, despite inconclusive scientific evidence.
Following the acquisition announcement, Kenvue’s shares have surged by 17% to over $16, while Kimberly-Clark’s stock has fallen by more than 10%, reflecting investor caution about the deal. Kenvue has also been dealing with legal battles, including a lawsuit filed by the Texas attorney general alleging that Kenvue and Johnson & Johnson concealed potential risks associated with Tylenol.
Despite these challenges, executives have maintained that the combined company will emerge stronger, with an expanded product range and enhanced market presence in the global health and wellness segment.
