Kimberly-Clark agrees to buy Tylenol owner Kenvue in $48.7 billion deal, creating consumer staples giant

Kimberly-Clark announced Monday it's struck an statement to bargain Kenvue successful a woody valued astatine $48.7 cardinal that would make a user staples giant.

The woody is simply a operation of currency and stock. Shares of Kenvue surged 15% successful aboriginal trading Monday, portion Kimberly-Clark fell 12%.

The combined institution would bring unneurotic brands similar Huggies and Kleenex with the likes of Band-Aid and Tylenol. It would see 10 billion-dollar brands, the companies said successful a news release. The acquisition would beryllium 1 of the largest connected Wall Street this year.

The transaction is expected to adjacent successful the 2nd fractional of 2026.

Kimberly-Clark Chairman and CEO Mike Hsu said successful a connection that the companies stock a "commitment to processing subject and exertion to supply bonzer care."

"Over the past respective years, Kimberly-Clark has undertaken a important translation to pivot our portfolio to higher-growth, higher-margin businesses portion rewiring our enactment to enactment smarter and faster," Hsu said. "We person built the instauration and this transaction is simply a almighty adjacent measurement successful our journey."

Kenvue, a portfolio of user wellness brands, spun out of Johnson & Johnson successful May 2023, marking the biggest shake-up successful J&J's astir 140-year history. Since then, Kenvue shares person fallen astir 35% from their archetypal nationalist offering price. As of Friday's close, Kenvue traded astatine astir $14 per stock for a marketplace headdress of astir $27 billion.

J&J has sold each of its remaining involvement successful the user goods giant.

The woody comes conscionable weeks aft President Donald Trump made unfounded claims linking the usage of acetaminophen — the progressive constituent successful Tylenol — during gestation to an accrued hazard of autism, sending Kenvue's banal sharply lower. The institution has staunchly pushed backmost against his administration's accusation, and galore aesculapian experts accidental Tylenol is often the safest and lone enactment for symptom and fever relief in pregnant women.

Acetaminophen is utilized by upward of 100 cardinal Americans annually.

Kenvue Chair Larry Merlo said successful a connection that pursuing a broad strategical review, the committee is "confident this operation represents the champion way guardant for our shareholders and each different stakeholders."

Three Kenvue committee members volition articulation the Kimberly-Clark committee upon the deal's closing. Hsu volition proceed to service arsenic president and CEO.

The combined institution would make estimated 2025 yearly nett gross of astir $32 cardinal and adjusted net earlier interest, taxes, depreciation and amortization of astir $7 billion, according to the release.

Kimberly-Clark and Kenvue expect astir $1.9 cardinal successful outgo synergies from the transaction to beryllium realized successful the archetypal 3 years pursuing the deal's close.

The acquisition comes arsenic Kimberly-Clark and the broader user packaged goods manufacture effort to code shifting request and buying behavior, often done deal-making and divestitures.

Tariffs imposed by Trump's medication person challenged the manufacture and its profits arsenic cardinal commodities similar pulp, which is utilized to marque tissues and diapers, turn much expensive.

At the opening of 2025, Kimberly-Clark stopped making private-label diapers for Costco to absorption connected much premium brands that bid higher margins.

In June, the institution sold a bulk stake successful its planetary insubstantial concern to Brazilian pulp shaper Suzano. The resulting associated task is intended to shield Kimberly-Clark from volatile input costs and assistance stabilize its margins.

Once the woody closes, Kimberly-Clark volition ain health-care brands similar Sudafed and Pepcid, erstwhile again pitting the institution against rival Procter & Gamble, which has a health-care part that includes Pepto-Bismol and Vicks.

But adjacent with Kimberly-Clark's blockbuster acquisition, P&G inactive dwarfs its rival successful some endeavor worth and yearly revenue. P&G has a marketplace headdress of astir $350 billion.

Similar to Kenvue, different spinoffs person besides precocious proven to beryllium fashionable acquisition targets. Last year, candy shaper Mars announced plans to bargain Kellanova, a snacking-centric spinoff of Kellogg, portion Ferrero bought W.K. Kellogg, the cereal stand-alone, this year.