Kimberly-Clark Buys Kenvue in Historic $48.7 Billion Deal

Kimberly-Clark announced on Monday its agreement to acquire Kenvue, the maker of Tylenol, Band-Aid, and Neutrogena, in a landmark $48.7 billion cash and stock deal. This transformative merger will unite two major consumer health companies and reshape the industry landscape.

A Combined Powerhouse of Iconic Brands

The combined business will bring together 10 billion-dollar brands under one roof, including Kleenex, Huggies, Kotex, Johnson’s baby products, and Listerine mouthwash. The merged company projects annual revenue of $32 billion with approximately $2.1 billion in annual cost savings. Kimberly-Clark will pay $21.01 per Kenvue share, representing a significant premium over Friday’s closing price of $14.37.

Strategic Timing and Market Impact

The acquisition requires shareholder approval and is expected to close in the second half of 2026. Upon completion, Kimberly-Clark shareholders will own approximately 54% of the combined entity, while Kenvue shareholders will hold about 46%. The new company will manufacture products that “touch nearly half the global population through every stage of life.”

Kimberly-Clark CEO Mike Hsu stated that the deal represents “a powerful next step” in the company’s transformation journey toward higher-growth, higher-margin businesses. Market reaction was mixed: Kenvue shares surged over 16%, while Kimberly-Clark shares declined nearly 12%. The acquisition positions the companies to become one of the world’s largest consumer staples and health goods manufacturers, creating significant synergies in production, distribution, and brand management.