TLDR
- Kimberly-Clark is buying Kenvue for $48.7 billion in the largest U.S. consumer goods acquisition ever.
- Kenvue shareholders receive $21.01 per share, a 46% premium over the closing price.
- The deal combines major brands including Huggies, Kleenex, Tylenol, and Band-Aid under one company.
- Expected cost savings range from $1.9 billion to $2.1 billion within three years of closing.
- The transaction should close in the second half of 2026 with combined revenues of $32 billion.
Kimberly-Clark revealed plans Monday to purchase Kenvue in a $48.7 billion transaction. The deal marks the largest consumer goods acquisition in U.S. history.
Kenvue shares jumped 20% in premarket trading on the news. Kimberly-Clark stock fell 14% as Wall Street processed the massive buyout.
The agreement values Kenvue at more than $40 billion in equity. Shareholders will receive $21.01 per share through a combination of cash and stock.
Each Kenvue shareholder gets $3.50 in cash plus 0.15 Kimberly-Clark shares per share held. This represents a 46% premium to Friday’s closing price of approximately $14 per share.
The merger unites household names across personal care and health products. Kimberly-Clark brings Huggies diapers and Kleenex tissues to the table. Kenvue adds Tylenol pain reliever, Band-Aid bandages, and Neutrogena skincare.
Kenvue’s Rocky Road Since J&J Spinoff
Kenvue became an independent company in May 2023 after spinning off from Johnson & Johnson. The stock has dropped nearly 35% from its IPO price since going public.
The company removed its CEO in July following months of poor performance. Political controversy added to investor concerns when President Trump claimed Tylenol causes autism in September. Health Secretary Robert F. Kennedy Jr. later said insufficient evidence supports that claim.
Kenvue also faces ongoing litigation over baby powder products and potential Tylenol lawsuits. These legal challenges have weighed on the stock throughout 2025.
Sources told Reuters in June that Kenvue was reviewing strategic options including a possible sale. That review has now concluded with the Kimberly-Clark deal.
Deal Financial Details and Structure
JPMorgan Chase Bank is providing committed financing for the acquisition. Kimberly-Clark plans to fund the purchase using cash and debt.
The companies project $1.9 billion to $2.1 billion in annual cost savings. These synergies should materialize within three years after closing.
The combined business expects to generate $32 billion in annual revenue based on 2025 figures. Adjusted EBITDA is projected at approximately $7 billion.
The new entity will feature 10 brands with over $1 billion in annual sales each. Current Kimberly-Clark CEO Mike Hsu will lead the merged company as chairman and chief executive.
Three Kenvue board members will join the Kimberly-Clark board when the deal closes. Either company must pay a $1.12 billion termination fee if the transaction falls apart.
What Happens Next
The transaction requires regulatory approval and is scheduled to close in the second half of 2026. That gives both companies roughly 18 months for integration planning.
RBC Capital Markets analyst Nik Modi noted the deal came sooner than expected given Kenvue’s legal and regulatory issues. He said Kimberly-Clark’s stronger capabilities should help improve brand performance going forward.
Kenvue Chair Larry Merlo stated the board conducted a comprehensive review before agreeing to the sale. He called the combination “the best path forward” for shareholders and stakeholders.
Kimberly-Clark CEO Hsu said his company has spent recent years transforming into a higher-growth, higher-margin business. He described the Kenvue acquisition as “a powerful next step in our journey.”
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