Kimberly-Clark to buy Kenvue in $48.7 billion deal

Kimberly-Clark to Acquire Kenvue in $48.7 Billion Deal

Kenvue, the manufacturer of Band-Aid, and Kimberly-Clark, the manufacturer of Huggies, are set to merge in a deal worth $48.7 billion, creating a consumer staples giant. The transaction, announced on Monday, is expected to close in the second half of 2026 and will bring together some of the world’s most recognizable brands, including Kleenex and Tylenol.

Details of the Acquisition

The deal is a combination of cash and stock, and shares of Kenvue surged 20% in premarket trading on Monday, while shares of Kimberly-Clark plummeted 14%. The combined company will boast 10 billion-dollar brands and is expected to generate estimated 2025 annual net revenues of roughly $32 billion and adjusted EBITDA of approximately $7 billion.

Kenvue, a portfolio of consumer health brands, was spun out of Johnson & Johnson in May 2023. Since its initial public offering, shares have fallen almost 35% to around $14 per share, giving the company a market capitalization of roughly $27 billion. The acquisition is expected to result in cost synergies of about $1.9 billion in the first three years following the deal’s close.

Leadership and Future Plans

Kimberly-Clark Chairman and CEO Mike Hsu stated that the companies share a commitment to developing science and technology to provide extraordinary care. Hsu will continue to serve as CEO of the combined company, and three Kenvue board members will join the Kimberly-Clark board upon the deal’s closing.

Kenvue Chair Larry Merlo expressed confidence that the combination represents the best path forward for shareholders and all other stakeholders. The acquisition is one of the largest on Wall Street this year and will create a consumer staples giant with a diverse portfolio of brands.