Kimberly-Clark Corp announced Monday that it will acquire Kenvue Inc, the maker of Tylenol, in a cash-and-stock transaction valued at approximately $48.7 billion, forging one of the largest consumer health and personal care powerhouses in the United States.
The blockbuster merger combines iconic household brands under a single roof, including Kenvue’s Neutrogena skincare line and Johnson’s baby products with Kimberly-Clark’s Huggies diapers and Kleenex tissues.
The combined entity is projected to generate roughly $32 billion in annual revenue.
Kenvue shares surged 18% in premarket trading on the news, while Kimberly-Clark stock fell 12.5%, reflecting investor enthusiasm for the target and concerns over the premium paid by the acquirer.
Under the terms of the deal, Kenvue shareholders will receive $3.50 in cash plus 0.15 shares of Kimberly-Clark common stock for each Kenvue share owned.
Reuters calculations peg the per-share value at $21.01, yielding an equity value of $40.32 billion.
The acquisition caps a turbulent period for Kenvue, which was spun out of Johnson & Johnson in 2023.
The company has faced a strategic review, executive turnover, and escalating litigation tied to Tylenol, amplified recently by public comments from President Donald Trump linking the pain reliever to autism risks.
Sources familiar with the matter told Reuters in June that Kenvue’s board was exploring options ranging from a full sale to a potential breakup of its portfolio.
“This transaction creates a consumer health leader with unmatched scale and an extensive brand portfolio trusted by families worldwide,” a Kimberly-Clark spokesperson said in a statement.
The deal is expected to close in the second half of 2026, pending regulatory approvals and customary conditions.