Kimberly-Clark to Acquire Kenvue in Massive $48.7 Billion Deal
In a major move, Kimberly-Clark has announced its intention to acquire Kenvue, the maker of Tylenol, in a cash and stock deal worth approximately $48.7 billion. The deal, which is expected to close in the second half of next year pending shareholder approval, would merge two consumer health giants, combining Kimberly-Clark's portfolio of brands including Huggies with Kenvue's own suite of popular products like Band-Aid, Benadryl, and Neutrogena.
Under the terms of the deal, Kenvue shareholders will receive $3.50 per share in cash plus 0.14625 Kimberly-Clark shares for each Kenvue share held at closing, valuing their stake at around $21.01 per share based on Friday's closing price of Kimberly-Clark stock.
The combined company would see Kimberly-Clark shareholders owning approximately 54% of the business, while Kenvue shareholders would hold about 46%. The deal is expected to bring together two companies with a long history of serving consumers across various stages of life, promising "billions" of customers at the merged entity's helm.
The acquisition comes on the heels of recent controversy surrounding Tylenol, which has faced scrutiny over its potential risks during pregnancy. In a statement, President Trump announced that the FDA had linked acetaminophen use in pregnant women to an increased risk of autism, although medical experts and Kenvue have since disputed these findings.
The deal would see Kimberly-Clark's headquarters remain in Irving, Texas, while the combined company maintains a significant presence in both Kimberly-Clark and Kenvue locations. CEO Mike Hsu will serve as chairman and chief executive of the merged entity, stating that the new company is poised to "serve billions of consumers across every stage of life."
				
			In a major move, Kimberly-Clark has announced its intention to acquire Kenvue, the maker of Tylenol, in a cash and stock deal worth approximately $48.7 billion. The deal, which is expected to close in the second half of next year pending shareholder approval, would merge two consumer health giants, combining Kimberly-Clark's portfolio of brands including Huggies with Kenvue's own suite of popular products like Band-Aid, Benadryl, and Neutrogena.
Under the terms of the deal, Kenvue shareholders will receive $3.50 per share in cash plus 0.14625 Kimberly-Clark shares for each Kenvue share held at closing, valuing their stake at around $21.01 per share based on Friday's closing price of Kimberly-Clark stock.
The combined company would see Kimberly-Clark shareholders owning approximately 54% of the business, while Kenvue shareholders would hold about 46%. The deal is expected to bring together two companies with a long history of serving consumers across various stages of life, promising "billions" of customers at the merged entity's helm.
The acquisition comes on the heels of recent controversy surrounding Tylenol, which has faced scrutiny over its potential risks during pregnancy. In a statement, President Trump announced that the FDA had linked acetaminophen use in pregnant women to an increased risk of autism, although medical experts and Kenvue have since disputed these findings.
The deal would see Kimberly-Clark's headquarters remain in Irving, Texas, while the combined company maintains a significant presence in both Kimberly-Clark and Kenvue locations. CEO Mike Hsu will serve as chairman and chief executive of the merged entity, stating that the new company is poised to "serve billions of consumers across every stage of life."