Kimberly-Clark to buy Kenvue in $48.7 billion deal

Kimberly-Clark It was announced on Monday that an agreement was reached on the purchase Kenvue A basic consumer goods giant will be created with a deal worth $48.7 billion.

The deal is a combination of cash and stock. Kenvue shares rose 15% in early trading Monday, while Kimberly-Clark fell 12%.

The combined company will bring together brands like Huggies and Kleenex with brands like Band-Aid and Tylenol. Will include $10 billion brand, companies say newsletter. This acquisition would be one of the largest on Wall Street this year.

The transaction is expected to be completed in the second half of 2026.

Kimberly-Clark Chairman and CEO Mike Hsu said in a statement that the companies share “a commitment to advancing science and technology to deliver exceptional care.”

“Over the last several years, Kimberly-Clark has undertaken a significant transformation to reorient our portfolio to higher growth, higher margin businesses while restructuring our organization to run smarter and faster,” Hsu said. “We have established the foundation and this transaction is the next strong step in our journey.”

Kenvue, a portfolio of consumer healthcare brands Johnson&Johnson In May 2023, this marked the largest shakeup in J&J’s nearly 140-year history. Since then, Kenvue shares have fallen nearly 35% from their initial public offering price. As of Friday’s close, Kenvue was trading at about $14 per share, with a market cap of about $27 billion.

J&J sold all of its remaining shares in the consumer goods giant.

The deal comes just weeks after President Donald Trump made unsubstantiated claims linking the use of acetaminophen (Tylenol’s active ingredient) during pregnancy to an increased risk of autism, and Kenvue’s shares fell sharply. The company has staunchly opposed its management’s accusations, and many medical experts say Tylenol is generally the safest and only option for relieving pain and fever in pregnant women.

Acetaminophen is used by more than 100 million Americans each year.

Kenvue Chairman Larry Merlo said in a statement that after a comprehensive strategic review, the board was “confident that this merger represents the best path forward for our shareholders and all other stakeholders.”

Following completion of the deal, three Kenvue board members will join the Kimberly-Clark board of directors. Hsu will continue as president and CEO.

According to the statement, the combined company is estimated to have an estimated annual net income of approximately $32 billion in 2025 and adjusted earnings before interest, taxes, depreciation and amortization to be approximately $7 billion.

Kimberly-Clark and Kenvue expect to realize approximately $1.9 billion in cost synergies from the transaction in the first three years following completion of the deal.

The acquisition comes as Kimberly-Clark and the broader consumer packaged goods industry seek to respond to changing demand and shopping behavior, often through deals and divestitures.

The industry and its profits have been challenged by tariffs imposed by the Trump administration, while essential commodities such as the pulp used to make tissues and diapers have become more expensive.

At the beginning of 2025, Kimberly-Clark stopped producing private label diapers. costco Focusing on more premium brands with higher margins.

In June, the company sold a majority stake in its international tissue business to Brazilian pulp producer Suzano. The goal of the resulting joint venture is to protect Kimberly-Clark from variable input costs and stabilize its margins.

Once the deal is completed, Kimberly-Clark will own health care brands like Sudafed and Pepcid, putting the company at odds with competitors once again. Procter & GambleThere is a health section that includes Pepto-Bismol and Vicks.

But despite the blockbuster acquisition of Kimberly-Clark, P&G dwarfs its rival in both enterprise value and annual revenue. P&G’s market capitalization is approximately $350 billion.

Similar to Kenvue, other spinoffs have proven to be popular acquisition targets recently. Sugar maker Mars announced acquisition plans last year KellanovaFerrero, a snack-centric spinoff of Kellogg, acquired stand-alone cereal brand WK Kellogg this year.