Listen to this articleThe basics:
- Kimberly-Clark to acquire Kenvue in a $48.7B cash and stock deal
- Combined company to feature 10 billion-dollar brands
- Merger expected to close in the second half of 2026
- Deal creates a global leader in consumer health and wellness
Kimberly-Clark Corp. will acquire Kenvue Inc. – the Summit-headquartered spinoff of Johnson & Johnson – in a cash and stock transaction that values the target at approximately $48.7 billion, the companies announced Nov. 3.
The company will create a combined portfolio that includes 10 billion-dollar brands, the announcement noted.
The transaction, which has been approved by both company’s boards of directors, is expected to close in the second half of 2026, subject to customary closing conditions.
Mike Hsu will serve as chairman and CEO of the combined company. At closing, three members of the Kenvue board of directors will join the Kimberly-Clark board. The combined company will be based in Kimberly-Clark’s current headquarters in Irving, Texas. The announcement said the company will “continue to have a significant presence in Kenvue’s locations.”
Kenvue opened its global headquarters in Summit in March 2025. The company separated from J&J in 2023.
Considered the world’s largest pure-play consumer health company by revenue, Kevnue’s portfolio includes Band-Aid, Neutrogena, Tylenol, Visine, Listerine, Aveeno and Rogaine.
Recent unrest
In July, the consumer health firm announced a major leadership shake-up. Then-CEO Thibaut Mongon stepped down, and the board appointed Kirk Perry as interim CEO. The company also has announced layoffs as part of a larger restructuring effort that included trimming 4% of its global workforce of about 22,000 employees.
Recently, Kenvue found itself amid a national debate regarding autism and the use of Tylenol during pregnancy. President Donald Trump and his administration made unfounded claims against the drug, which elicited strong pushback from the pharmaceutical industry.
Texas Attorney General Ken Paxton then filed a lawsuit Oct. 27 against Johnson & Johnson and Kenvue, alleging the companies failed to warn consumers about the risks of taking Tylenol while pregnant. In a statement, Kenvue described Paxton’s lawsuit as “scientifically unfounded litigation.”
Based on current projections, the combined company would generate 2025 annual net revenues of approximately $32 billion and approximately $7 billion of adjusted EBITDA, according to the firms.
The companies added that they have identified about $1.9 billion “in cost synergies” and approximately $500 million in incremental profit from revenue synergies, partially offset by reinvestment of approximately $300 million.
Under the terms of the agreement, Kenvue shareholders will receive $3.50 per share in cash along with 0.14625 Kimberly-Clark shares for each Kenvue share held at closing, for a total consideration to Kenvue shareholders of $21.01 per share, based on the closing price of Kimberly-Clark shares as of Oct. 31, 2025. At the close of the deal, current Kimberly-Clark shareholders are expected to own approximately 54% and current Kenvue shareholders are expected to own approximately 46% of the combined company on a fully diluted basis.
Kimberly-Clark has received committed financing from JPMorgan Chase Bank N.A. and intends to fund the cash component of the transaction consideration through a combination of cash from its balance sheet, proceeds from new debt issuance and proceeds from the previously announced sale of a 51% interest in its International Family Care and Professional business.
From the leadership
“We are excited to bring together two iconic companies to create a global health and wellness leader,” Hsu said in a statement. “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.”
Larry Merlo, Kenvue chair, said, “Following the Board’s comprehensive review of strategic alternatives for Kenvue, we are pleased to have reached this agreement with Kimberly-Clark that delivers significant upfront value for our shareholders and substantial upside potential through ownership in the combined company. Bringing together Kenvue and Kimberly-Clark creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead.”
Perry added, “Together, our combined strengths, expanded capabilities and resources, and broader reach will empower us to innovate even faster and strengthen our category leadership. We truly believe this transaction with Kimberly-Clark will bring greater value to our shareholders, create new and different potential growth opportunities for our talented employees and deliver even more benefits to our customers and consumers.”
