Healthcare giant Johnson & Johnson (JNJ) plans to sell its entire stake in spun-off company Kenvue (KVUE).
Johnson & Johnson currently holds 182.3 million shares in Kenvue stock. The company plans to sell the shares it owns in a debt-for-equity exchange.
Kenvue made its market debut through an initial public offering (IPO) in May 2023.
Johnson & Johnson initially sold 172.8 million shares of the business, raising $3.8 billion U.S. in the process.
Management at Johnson & Johnson previously said that they planned to continue to own a stake of about 91% in Kenvue. Now, they appear to be reversing course with plans to sell the entire holding.
Kenvue is the company behind the consumer healthcare products that Johnson & Johnson previously made, including Listerine mouthwash, Aveeno skin care, and Tylenol.
Johnson & Johnson is now focused on making prescription medications and medical devices.
The spin-off of the consumer health business came about after Johnson & Johnson faced multiple lawsuits over allegations that its baby powder caused cancer in some people.
Earlier this year, Johnson & Johnson agreed to pay $700 million U.S. to resolve an investigation by more than 40 states into the marketing of its talcum powder.
Kenvue’s stock has declined 22% since its market debut a year ago and now trades at $20.54 U.S. per share.
Johnson & Johnson’s stock has declined 6% over the last 12 months and currently trades at $149.91 U.S. per share.
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