Kimberly-Clark plans to acquire Kenvue — the maker of Tylenol — in a cash-and-stock transaction valued at roughly $48.7 billion, forming a major powerhouse in the consumer health products industry.
Under the terms of the merger, shareholders of Kimberly-Clark — the company behind Huggies, Kleenex, and Cottonelle — will control about 54% of the new company. Investors in Kenvue will hold approximately 46%.
Kenvue has only been a standalone company for a short time. Johnson & Johnson spun it off two years ago after announcing in late 2021 that it would separate its consumer health unit from its pharmaceutical and medical device businesses, aiming to give each group more agility.
The company drew national attention recently after Health Secretary Robert F. Kennedy, Jr. revived the unproven claim that Tylenol is linked to autism and suggested those rejecting the theory were motivated by dislike for President Donald Trump. In a meeting with Trump and Cabinet members, Kennedy repeated the claim, while acknowledging that there was no medical proof supporting it.
Kenvue — which also owns brands such as Listerine and Band-Aid — announced in July that CEO Thibaut Mongon was stepping down during an ongoing strategic review. Board member Kirk Perry is serving as interim CEO.
Once combined, the companies expect to produce about $32 billion in net revenue in 2025. Kimberly-Clark and Kenvue estimate roughly $1.9 billion in cost savings within the first three years after the deal closes.
Kimberly-Clark Chairman and CEO Mike Hsu said in a statement, “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 remain chairman and CEO after the merger. Three directors from Kenvue’s board will join Kimberly-Clark’s board. The merged company will retain Kimberly-Clark’s headquarters in Irving, Texas, while maintaining a significant footprint in Kenvue’s existing locations.
The transaction is expected to be finalized in the second half of next year, pending shareholder approval from both companies.