Kimberly-Clark is set to acquire Kenvue in a cash and stock transaction valuing Kenvue at about US$48.7 billion (A$74 billion).
The transaction would create a company that includes brands such as Kleenex, Huggies, Band-Aid, as well as the embattled Tylenol, which Donald Trump claimed increases the risk of autism in children when used by pregnant women.
Since the announcement, shares of Kenvue have risen 17 per cent, while Kimberly-Clark shares dropped 12 per cent.
Mike Hsu, Chairman and CEO of Kimberly-Clark, said the transaction would 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.”
Following completion, expected in the second half of 2026, current Kimberly-Clark shareholders will own about 54 per cent of the combined company, while Kenvue shareholders will hold roughly 46 per cent.
Kimberly-Clark said the acquisition represents an enterprise value multiple of approximately 14.3 times Kenvue’s last twelve months adjusted EBITDA, or 8.8 times including expected run-rate synergies of US$2.1 billion.
Larry Merlo, Chair of the Board at Kenvue, said the deal followed a “comprehensive review of strategic alternatives” and offered “significant upfront value” to shareholders.
“Bringing together Kenvue and Kimberly-Clark creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead.”
Kenvue Chief Executive Officer Kirk Perry said the merger would unite “highly complementary portfolios filled with iconic, beloved brands and everyday essentials that people trust and count on”.
“Together, our combined strengths, expanded capabilities and resources, and broader reach will empower us to innovate even faster and strengthen our category leadership.”
The combined company is expected to generate approximately US$32 billion in annual net revenues and around US$7 billion in adjusted EBITDA. Kimberly-Clark and Kenvue estimate around US$1.9 billion in cost synergies and US$500 million in incremental profit from revenue synergies, partially offset by reinvestment of US$300 million.
The transaction remains subject to shareholder and regulatory approvals and other customary conditions.
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