Kimberly-Clark Buys Kenvue in $48.7 Billion Deal to Form Global Health Giant
So, one of the biggest business moves of the year has just been announced — Kimberly-Clark, the company best known for making Huggies diapers and Kleenex tissues, is acquiring Kenvue, the parent company of Tylenol and Johnson’s baby products. The price tag? A staggering $48.7 billion . That’s right — this merger is set to create one of the largest consumer health and wellness companies in the world.
Now, here’s how this all came about. Kenvue, which was spun off from Johnson & Johnson in 2022, had already been a strong player in the health and personal care market, with well-known brands like Tylenol, Listerine, and Clean & Clear. Kimberly-Clark, on the other hand, has long been a household name for personal care essentials like Huggies, Kleenex, and Depend. By joining forces, the two companies aim to combine their massive product portfolios and global reach — essentially forming a powerhouse that touches nearly half of the world’s population in some way or another.
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Under the deal, Kimberly-Clark will pay $21.01 per Kenvue share , which represents a big premium over Kenvue’s recent stock price. The new company is projected to generate about $32 billion in annual revenue , with 10 brands valued at over a billion dollars each . But it’s not all smooth sailing — Kimberly-Clark’s stock dropped by almost 16% in premarket trading after the announcement, while Kenvue’s shares jumped nearly 20%, showing a mixed reaction from investors.
Executives from both sides are calling this a “transformational” move. Kimberly-Clark’s CEO, Mike Hsu, said the merger will create a global health and wellness leader built around innovation, science, and everyday consumer trust. Kenvue’s leadership echoed that sentiment, saying the combination will help them expand faster, innovate more effectively, and ultimately deliver more value to customers and shareholders alike.
However, Kenvue comes into this merger with a bit of baggage. Recently, it’s been dealing with legal pressure after the Trump administration’s claims — unsupported by science — that Tylenol use during pregnancy could cause autism. That controversy hit Kenvue’s stock hard, and sales in some categories have been slipping. But the company insists it will “vigorously defend” itself against the allegations and is focused on the long-term benefits of this merger.
If all goes as planned, the acquisition is expected to close in the second half of next year . Once it’s done, Kimberly-Clark shareholders will own about 54% of the new company , and Kenvue shareholders will hold the rest.
In short, this deal is being seen as a bold step to create a consumer health empire that stretches from baby care to adult wellness — uniting beloved global brands under one massive umbrella. Whether it delivers on that promise remains to be seen, but one thing’s for sure — it’s going to reshape the landscape of everyday consumer health products for years to come.
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