Kimberly-Clark agrees to buy Tylenol owner Kenvue in $48.7 billion deal, creating consumer staples giant

Kimberly-Clark

reported Monday it’s struck an understanding to purchase Kenvue

in a bargain esteemed at $48.7 billion that would make a buyer staples giant.

The bargain is a combination of cash and stock. Offers of Kenvue surged 18% in premarket exchanging Monday, whereas offers of Kimberly-Clark dove 14%.

The combined company would bring together brands like Huggies and Kleenex with the likes of Band-Aid and Tylenol. It would incorporate 10 billion-dollar brands, the companies said in a news discharge. The securing would be one of the biggest on Divider Road this year.

The exchange is anticipated to near in the moment half of 2026.

Kimberly-Clark Chairman and CEO Mike Hsu said in a explanation that the companies share a “commitment to creating science and innovation to give exceptional care.”

“Over the final a few a long time, Kimberly-Clark has attempted a critical change to rotate our portfolio to higher-growth, higher-margin businesses whereas rewiring our organization to work more intelligent and faster,” Hsu said. “We have built the establishment and this exchange is a capable another step in our journey.”

Kenvue, a portfolio of customer wellbeing brands, spun out of Johnson & Johnson

in May 2023, stamping the greatest shake-up in J&J’s about 140-year history. Since at that point, Kenvue offers have fallen nearly 35% from their introductory open advertising cost. As of Friday’s near, Kenvue exchanged at approximately $14 per share for a advertise cap of generally $27 billion.

J&J has sold all of its remaining stake in the shopper products giant.

The bargain comes fair weeks after President Donald Trump made unwarranted claims connecting the utilize of acetaminophen — the dynamic fixing in Tylenol — amid pregnancy to an expanded hazard of extreme introvertedness, sending Kenvue’s stock strongly lower. The company has staunchly pushed back against his administration’s allegation, and numerous therapeutic specialists say Tylenol is regularly the most secure and as it were alternative for torment and fever alleviation in pregnant women.

Acetaminophen is utilized by upward of 100 million Americans annually.

Kenvue Chair Larry Merlo said in a explanation that taking after a comprehensive vital audit, the board is “confident this combination speaks to the best way forward for our shareholders and all other stakeholders.”

Three Kenvue board individuals will connect the Kimberly-Clark board upon the deal’s closing. Hsu will proceed to serve as CEO.

The combined company would create evaluated 2025 yearly net incomes of generally $32 billion and balanced EBITDA of around $7 billion, agreeing to the release.

Kimberly-Clark and Kenvue anticipate approximately $1.9 billion in fetched synergies from the exchange to be realized in the to begin with three a long time taking after the deal’s close.

The securing comes as Kimberly-Clark and the broader buyer bundled merchandise industry attempt to address moving request and shopping behavior, regularly through dealmaking and divestitures.

Tariffs forced by Trump’s organization have challenged the industry and its benefits as key commodities like mash, which is utilized to make tissues and diapers, develop more expensive.

At the starting of 2025, Kimberly-Clark halted making private-label diapers for Costco

to center on more premium brands that command higher margins.

In June, the company sold a larger part stake in its worldwide tissue trade to Brazilian mash producer Suzano. The coming about joint wander is expecting to shield Kimberly-Clark from unstable input costs and offer assistance stabilize its margins.

Once the bargain closes, Kimberly-Clark will possess health-care brands like Sudafed and Pepcid, once once more setting the company against match Procter & Gamble

, which has a health-care division that incorporates Pepto Bismol and Vicks.

But indeed with Kimberly-Clark’s blockbuster securing, P&G still midgets its equal in both endeavor esteem and yearly income. P&G has a advertise cap of around $350 billion.

Similar to Kenvue, other spinoffs have too as of late demonstrated to be well known procurement targets. Final year, sweet producer Damages declared plans to purchase Kellanova

, a snacking-centric spinoff of Kellogg, whereas Ferrero bought W.K. Kellogg, the cereal standalone, this year.

Source : https://www.cnbc.com/2025/11/03/kimberly-clark-to-buy-kenvue.html

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