Kimberly-Clark, the company behind brands such as Huggies and Kleenex, has acquired fellow global conglomerate Johnson & Johnson spinoff Kenvue, the company announced Monday.
Kenvue’s portfolio includes brands such as Tylenol, BAND-AID, Aveeno, Johnson’s, Listerine and Neutrogena. Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction valued at approximately $48.7 billion, based on the closing price of Kimberly-Clark common stock on Oct. 31. The acquisition will result in 10 billion-dollar brands being housed under the same corporate umbrella. A Kimberly-Clark press release indicated the combined company would generate 2025 annual net revenues of about $32 billion, based on current projections.
The transaction is expected to deliver immediate value creation to Kenvue shareholders from $6.8 billion in upfront cash consideration, according to the release. Kimberly-Clark operates a manufacturing plant in Maumelle and a sales office in northwest Arkansas.
“We are excited to bring together two iconic companies to create a global health and wellness leader,” said Mike Hsu, Kimberly-Clark chairman and CEO. “Kenvue is uniquely positioned at the intersection of CPG and healthcare, with exceptional talent and a differentiated brand offering serving attractive consumer health categories. With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life. Over the last several years, Kimberly-Clark has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster. We have built the foundation and this transaction is a powerful next step in our journey. We look forward to working with the Kenvue team to bring these companies together, and are confident that we will drive significant value for our combined shareholders.”
Johnson & Johnson and Kenvue were sued last week by Texas Attorney General Ken Paxton, who said the companies failed to warn consumers about the risks of taking the drug while pregnant. The suit claims they “willfully ignored and attempted to silence the science” connecting Tylenol to autism and attention deficit hyperactivity disorder. It also claims that Johnson & Johnson broke the law by transferring liability to Kenvue, which was spun off in 2023, to shield its assets against lawsuits. Some medical organizations have pushed back against the autism claim.
In September, President Donald Trump and Health and Human Services Secretary Robert F. Kennedy Jr. urged consumers not to take Tylenol and said the FDA would soon be notifying physicians that acetaminophen, the active ingredient in the painkiller, is associated with an increased risk of autism.
READ ALSO: Trump Endorses Sanders’ Re-election Bid
