November 9, 2025
Kimberly-Clark is buying Tylenol maker Kenvue in a cash and stock deal worth about $48.7 billion, creating a massive consumer health goods company.
Shareholders of Kimberly-Clark will own about 54% of the combined company. Kenvue shareholders will own about 46% in what is one of the largest corporate takeovers this year.
The combined company will have a huge stable of household brands under one roof, putting Kenvue’s Listerine mouthwash and Band-Aid side-by-side with Kimberly-Clark’s Cottonelle toilet paper, Huggies, and Kleenex tissues. It will also generate about $32 billion in annual revenue.
Kenvue has spent a relatively brief period as an independent company, having been spun off by Johnson & Johnson two years ago. J&J first announced in late 2021 that it was splitting its slow-growth consumer health division from the pharmaceutical and medical device divisions.
Kenvue has since been targeted by activist investors unhappy about the trajectory of the company, and Wall Street appeared to anticipate some heavy lifting ahead for Kimberly-Clark.
Shares of Kimberly-Clark, based just outside of Dallas, slumped 13% Monday. Kenvue’s stock jumped more than 15%.
In July, Kenvue announced that CEO Thibaut Mongon was leaving in the midst of a strategic review with the company under mounting pressure from activist investors.
Kimberly-Clark Chairman and CEO Mike Hsu will be chairman and CEO of the combined company. Three members of Kenvue's board will join Kimberly-Clark's board at closing. The combined company will keep Kimberly-Clark’s headquarters in Irving, Texas, but there will be significant operations around Kenvue facilities and locations as well.
The deal is expected to close in the second half of next year. It still needs approval from shareholders of both companies.
Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing. That amounts to $21.01 per share, based on the closing price of Kimberly-Clark shares on Friday.
Kimberly-Clark and Kenvue said that they identified about $1.9 billion in cost savings that are expected in the first three years after the transaction’s closing.
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