Consumer goods giant Kimberly-Clark (KMB) is acquiring Tylenol-maker Kenvue (KVUE) for $48.7 billion U.S. in cash and stock.
In a news release, the two companies said the deal will create one of the largest consumer health goods companies in the U.S.
Kimberly-Clark makes popular brands such as Huggies diapers, Cottonelle toilet paper, Scott paper towel, and Kleenex tissue.
Formerly the consumer healthcare division of Johnson & Johnson (JNJ), Kenvue was spun off as a separate, publicly traded company in 2022.
Kenvue’s well-known brands include Band-Aid, Benadryl, Listerine, Tylenol, and Visine, among many others.
In recent years, Kenvue has struggled following a leadership change and consumer lawsuits brought against some of its brands, notably its baby powder.
However, Kenvue’s stock also took a hit earlier this year after the Trump administration made unsubstantiated claims that pain medicine Tylenol causes autism in babies.
The acquisition of Kenvue by Kimberly-Clark brings together two companies with combined annual sales of $32 billion U.S.
Under terms of the arrangement, Kenvue’s shareholders will receive $3.50 U.S. per share and 0.15 Kimberly-Clark shares for each KVUE stock held.
Shares of Kenvue are up 18% on news of the deal, while Kimberly-Clark’s stock is down 13%.
Before today (Nov. 3), Kenvue’s stock had declined 33% this year to trade at $14.37 U.S. per share. Kimberly-Clark’s stock had fallen 8% on the year to $119.71 U.S. a share.
