Kimberly-Clark to acquire Tylenol maker Kenvue in $48.7 billion merger

New Delhi: Kimberly-Clark has announced plans to acquire Kenvue, the maker of Tylenol, in a cash-and-stock transaction valued at approximately $48.7 billion. The deal will merge the Huggies and Kleenex manufacturer with the owner of well-known consumer health brands such as Aveeno, Band-Aid, Benadryl, Listerine, and Neutrogena, according to a news report.

Under the agreement, Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing. Based on Friday’s closing price of Kimberly-Clark shares, this represents a value of $21.01 per Kenvue share.

Following the transaction, Kimberly-Clark shareholders are expected to hold around 54% of the combined company, while Kenvue shareholders will own about 46%. The new entity will retain Kimberly-Clark’s headquarters in Irving, Texas, while maintaining a significant presence at Kenvue’s existing locations.

Kimberly-Clark CEO Mike Hsu, who will serve as chairman and chief executive of the combined company, said in a statement, “We will serve billions of consumers across every stage of life.”

The merger brings together two global portfolios of everyday consumer health and hygiene products, strengthening Kimberly-Clark’s position in categories spanning personal care, household essentials, and over-the-counter health.

The deal is expected to close in the second half of next year, pending shareholder approvals from both companies.

Kenvue has faced recent scrutiny over Tylenol following comments by former President Donald Trump, who said the U.S. Food and Drug Administration believes acetaminophen use during pregnancy may be linked to an increased risk of autism. Medical experts and Kenvue maintain that Tylenol is safe.

In July, Kenvue announced that CEO Thibaut Mongon would step down as part of a strategic review. Board member Kirk Perry has since taken over as interim CEO.