Kimberly-Clark is buying Tylenol maker Kenvue in a cash and stock deal worth about $48.7 billion, creating a massive consumer health goods company.
Shareholders of Kimberly-Clark will own about 54% of the combined company. Kenvue shareholders will own about 46% in what is one of the largest corporate takeovers this year. The deal must still be approved by the shareholders of both companies.
The combined company will have a huge stable of household brands under one roof, putting Kenvue’s Listerine mouthwash and Band-Aid side-by-side with Kimberly-Clark’s Cottonelle toilet paper, Huggies and Kleenex tissues. It will also generate about $32 billion in annual revenue.
Kenvue has spent a relatively brief period as an independent company, having been spun off by Johnson & Johnson two years ago. J&J first announced in late 2021 that it was splitting its slow-growth consumer health division from the pharmaceutical and medical device divisions.
Kenvue has since been targeted by activist investors unhappy about the trajectory of the company and Wall Street appeared to anticipate some heavy lifting ahead for Kimberly-Clark.
Recently, Kenvue’s Tylenol has drawn headlines after President Trump announced the Food and Drug Administration believes the use of the pain medication’s active ingredient, acetaminophen, during pregnancy can be associated with an increased risk of autism. Medical experts and Kenvue say Tylenol is safe.
The deal is expected to close in the second half of next year. It still needs approval from shareholders of both companies.
Kenvue said in July that CEO Thibaut Mongon was leaving as part of a strategic review of the company’s business. Board member Kirk Perry is serving as interim CEO.
The combined company will keep Kimberly-Clark’s headquarters in Irving, Texas, and continue to have a significant presence in Kenvue’s locations.
