Kimberly‑Clark Corp. is acquiring Kenvue Inc. in a cash‑and‑stock transaction valued at $48.7 billion. Kenvue shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly‑Clark for each Kenvue share, which equates to an implied $21.01 per share based on Kimberly‑Clark’s closing price on October 31 2025. The transaction is expected to close in the second half of 2026, subject to regulatory and shareholder approvals.
The combined company will own iconic brands such as Tylenol, Band‑Aid, Neutrogena, Listerine, and Huggies. Projections indicate annual revenue of about $32 billion and cost synergies of $2.1 billion over the first three years. Ownership will be split 54% for Kimberly‑Clark shareholders and 46% for Kenvue shareholders, with Mike Hsu named chairman and CEO of the new entity.
Kenvue’s Q3 2025 results showed net sales that fell 3.5% year‑over‑year and organic sales that declined 4.4%. The company has faced significant legal challenges, including lawsuits alleging a link between Tylenol and autism in pregnant women and litigation over talc‑based products. CEO Thibaut Mongon departed in July 2025, and Kirk Perry stepped in as interim CEO. The acquisition offers Kenvue shareholders a premium exit and removes the company’s ongoing legal headwinds.
Kimberly‑Clark’s Q3 2025 net sales were $4.2 billion, with 2.5% organic growth. For the first nine months of 2025, total sales were $12.4 billion, a 2.6% decline versus the same period in 2024, driven by the exit of a private‑label diaper business and the discontinuation of PPE operations. The deal expands Kimberly‑Clark’s presence in the over‑the‑counter health and wellness sector, aligning with its strategy to focus on higher‑growth, higher‑margin businesses.
The transaction represents a 14.3‑times multiple of Kenvue’s last‑twelve‑months adjusted EBITDA, or 8.8‑times when expected synergies are included. The combined company is positioned to become a global health and wellness leader, with synergies expected to be accretive to adjusted earnings per share by year two.
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