Kimberly-Clark Corp (NYSE:KMB, ETR:KMY) announced it will acquire Kenvue (NYSE:KVUE), the maker of Tylenol and other consumer health products, in a cash and stock transaction valued at approximately $48.7 billion.
Under the agreement, Kenvue shareholders will receive $3.50 per share in cash plus 0.14625 Kimberly-Clark shares for each Kenvue share, totaling $21.01 per share based on Kimberly-Clark’s recent stock price.
Shares of Kenvue surged on the news, up 16% at about $16.70, while Kimberly-Clark shares fell 12% to about $105.
The merger brings together brands including Huggies, Kleenex, Band-Aid, Tylenol, Neutrogena, and Aveeno, with anticipated 2025 annual revenue of around $32 billion. The transaction is expected to generate approximately $1.9 billion in cost synergies over the first three years.
"Our combination with Kimberly-Clark unites two highly complementary portfolios filled with iconic, beloved brands and everyday essentials that people trust and count on throughout their lives," Kenvue CEO Kirk Perry said in a statement.
The merger will create a global health and wellness leader, according to Kimberly-Clark CEO Mike Hsu. "With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life,” Hsu said.
Kimberly-Clark will fund the deal through a combination of cash on hand, new debt, and proceeds from prior asset sales.
Upon closing, expected in the second half of 2026 pending shareholder and regulatory approvals, Kimberly-Clark shareholders are projected to own 54% of the combined company, with Kenvue shareholders holding 46%.