Breaking news: Kimberly-Clark to acquire Kenvue in US$48.7B deal

Kimberly-Clark has announced it will buy Kenvue in a deal valued at US$48.7 billion. 

The two companies would combine brands such as Huggies and Kleenex with Band-Aid and Tylenol, generating an estimated net revenue of roughly US$32 billion in 2025. 

Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash-and-stock transaction. Shares of Kenvue surged 18% in premarket trading today, while shares of Kimberly-Clark plunged 14%.

This transaction brings together two major US companies, creating a combined portfolio of complementary products, including 10 billion-dollar brands. 

“We are excited to bring together two iconic companies to create a global health and wellness leader,” says Mike Hsu, Kimberly-Clark Chairman and CEO. 

“Kenvue is uniquely positioned at the intersection of consumer packaged goods and health care, with exceptional talent and a differentiated brand offering serving attractive consumer health categories.”

The combination represents the largest ever buyout in the US consumer goods sector to date. 

It is expected to close in the second half of 2026, subject to Kenvue and Kimberly-Clark shareholder approvals, regulatory approvals, and satisfaction of other customary closing conditions.

Sales, strategy & stockholders

Kenvue became officially independent in 2023, following its separation from Johnson & Johnson. While the spinout positioned it as one of the largest consumer health companies, the company has faced significant challenges.

The sale will combine many major personal care brands under one company.Earlier this month, rumors circulated about Kenvue considering the sale or spin-off of its skin health and beauty unit. The reports followed sales slumps and damaging health allegations against its pain reliever, Tylenol.

In the third quarter of 2024, Kenvue reported a 4.2% sales decline in its Skin Health and Beauty division, which includes brands like Neutrogena and Aveeno. A strategic review was later announced alongside a preliminary sales decline, sparking rumors of divestitures and portfolio simplification.

In a spiral of bad news, the financial problems were swiftly followed by leaked news that US Health Secretary Robert F. Kennedy, Jr. planned to link the US-based company’s commonly used painkiller, Tylenol, to autism. 

However, last week, Kennedy, Jr. acknowledged that there was no evidence proving Tylenol causes autism.

Larry Merlo, Kenvue chair of the board, says: “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. We are excited about this next chapter for Kenvue and confident this combination represents the best path forward for our shareholders and all other stakeholders.”

Kenvue’s shareholders will receive US$21.01 per share in cash and stock, based on the closing price of Kimberly-Clark shares as of October 31, 2025. Upon closing of the transaction, Kimberly-Clark shareholders are expected to own approximately 54% and Kenvue shareholders are expected to own approximately 46% of the combined company on a fully diluted basis.