Kimberley-Clark Corporation to Acquire Kenvue for $48.7 billion in massive pharma deal
Kimberley-Clark Corporation announced it would purchase Kenvue, the consumer-goods business spun off of Johnson & Johnson, for $48.7 billion. According to a joint release, the newly combined companies will benefit from revenue synergies and a portfolio of “complementary products.”
According to a joint statement, the two companies anticipate making a combined $32 billion in annual revenue, as well as saving $1.9 billion in cost saving synergies following the merger and $500 million in incremental profit from revenue synergies. Those synergies include combining Kimberley-Clark’s promotional operations, Kenvue’s healthcare network, and both companies’ combined R&D operations.
The companies noted their combined offerings would make a unified company a consumer-health giant. They each command a substantial swath of consumer pharmaceutical and health brands. Kimberley-Clark owns Huggies, Pull-Ups and Depends diapers, as well as Kleenex and Scott tissues, among other brands; Kenvue controls Band-Aids, Johnson’s, Listerine and Neutrogena.
Notably, Kenvue also owns the name brand for Tylenol: Following a September press conference in which President Trump and Secretary of Health Robert Kennedy blamed the anti-inflammatory for causing autism, Kenvue’s stock price fell to a year-over-year-low of -13.9% on October 4. According to the November 3 announcement, the $48.7 billion price tag is based on Kenvue’s closing priced stock as of October 31, at $
What people are saying
"We are excited to bring together two iconic companies to create a global health and wellness leader. Kenvue is uniquely positioned at the intersection of CPG and healthcare, with exceptional talent and a differentiated brand offering serving attractive consumer health categories. With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life,” said Kimberley-Clark CEO Mike Hsu. “Over the last several years, Kimberly-Clark has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster. We have built the foundation and this transaction is a powerful next step in our journey. We look forward to working with the Kenvue team to bring these companies together, and are confident that we will drive significant value for our combined shareholders.”
"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," said Kirk Perry, CEO of Kenvue. "Our teams share a passion for delivering science-backed solutions that play a meaningful role in homes and communities around the world. Together, our combined strengths, expanded capabilities and resources, and broader reach will empower us to innovate even faster and strengthen our category leadership. We truly believe this transaction with Kimberly-Clark will bring greater value to our shareholders, create new and different potential growth opportunities for our talented employees and deliver even more benefits to our customers and consumers."
"Following the Board's comprehensive review of strategic alternatives for Kenvue, we are pleased to have reached this agreement with Kimberly-Clark that delivers significant upfront value for our shareholders and substantial upside potential through ownership in the combined company,” said Larry Merlo, Kenvue Chair of the Board. “Bringing together Kenvue and Kimberly-Clark creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead. We are excited about this next chapter for Kenvue and confident this combination represents the best path forward for our shareholders and all other stakeholders."