Kimberly-Clark Corporation announced Monday that it will acquire Kenvue—the maker of Tylenol, Band-Aid, and Aveeno—in a deal valued at approximately $48.7 billion. The transaction, structured as a mix of cash and stock, will unite two global consumer health and hygiene powerhouses behind a portfolio of some of the most recognizable household brands in the world.
Under the terms of the agreement, Kenvue shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly-Clark stock for each Kenvue share they own, representing a total value of about $21.01 per share based on Friday’s closing price. Once the merger is completed, Kimberly-Clark investors are expected to hold roughly 54% of the combined company, while Kenvue shareholders will own about 46%.
The merger will bring together a range of billion-dollar brands under one roof, combining Kimberly-Clark’s well-known products such as Kleenex, Huggies, Cottonelle, Scott, Kotex, Poise, Pull-Ups, and Viva with Kenvue’s consumer staples like Tylenol, Band-Aid, Benadryl, Listerine, Neutrogena, and Aveeno.
Kimberly-Clark CEO Mike Hsu said in a statement: “We are excited to bring together two iconic companies to create a global health and wellness leader. With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life.”
Hsu will assume the role of chairman and chief executive officer of the merged company, which will maintain Kimberly-Clark’s headquarters in Irving, Texas, while also preserving a significant presence at Kenvue’s existing locations. Three members of Kenvue’s board will join Kimberly-Clark’s board after the transaction closes. The merger still requires approval from both companies’ shareholders and is anticipated to be finalized in the second half of next year.
The deal comes amid a turbulent period for Kenvue. The company’s CEO, Thibaut Mongon, stepped down earlier this year as part of a strategic review, with board member Kirk Perry stepping in as interim CEO. Kenvue has also faced scrutiny surrounding its flagship product, Tylenol, following recent claims regarding the safety of acetaminophen use during pregnancy. Adding to the company’s challenges, Texas Attorney General Ken Paxton filed a lawsuit last week against Kenvue and its former parent, Johnson & Johnson, alleging the firms “deceptively marketed” Tylenol as a completely safe pain reliever.
Following Monday’s announcement, Kenvue’s shares surged about 20% in premarket trading, while Kimberly-Clark’s stock dipped roughly 14%, according to CNBC.
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