US company Kimberly-Clark buys Tylenol maker Kenvue
Kimberly-Clark is acquiring Tylenol maker Kenvue in a cash-and-stock deal, creating a massive consumer health products company.
In the deal valued at about US$48.7 billion ($74.5 billion), Kimberly-Clark shareholders will own about 54 percent of the combined company and Kenvue shareholders will own about 46 percent.
The combined company will have a large roster of household brands under one roof, juxtaposing Kenvue’s Tylenol medication, Listerine mouthwash and Band-Aid alongside Kimberly-Clark’s Cottonelle toilet paper, Huggies and Kleenex tissues.
It will also generate annual revenue of approximately US$32 billion.
Kimberly-Clark and Kenvue said they determined that cost savings of approximately $1.9 billion are expected to be realized in the first three years after completion of the transaction.
“With a shared commitment to advancing science and technology to deliver exceptional care, we will serve billions of consumers at every stage of life,” Kimberly-Clark president and CEO Mike Hsu said in a statement.
Hsu will become president and CEO of the combined company.
Three members of Kenvue’s board of directors will join Kimberly-Clark’s board of directors at closing.
The combined company will keep Kimberly-Clark’s headquarters in Irving, Texas, and continue to have a significant presence in Kenvue locations.
The deal is expected to be completed in the second half of next year.
It still requires approval from shareholders of both companies.
Kimberly-Clark’s shares lost 11.8 percent on Wall Street, while Kenvue’s shares rose more than 17 percent.
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