Huggies by Kimberly-Clark and Band-Aid by Kenvue.
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kimberly clark announced on Monday that it had agreed to acquire the company. Kenview The deal, valued at $48.7 billion, would create a consumer staples giant.
The transaction is a combination of cash and stock, with total equity, excluding the impact of debt, of approximately $40 billion. Kenview stock rose 12% on Monday, while Kimberly-Clark stock fell 14%.
The combined company will combine brands like Huggies and Kleenex with brands like Band-Aid and Tylenol. That includes $10 billion brands, the companies said in a news release. The acquisition would be one of the biggest acquisitions on Wall Street this year.
The transaction is expected to close in the second half of 2026.
Kimberly-Clark Chairman and CEO Mike Hsu said in a statement that the two companies share “a commitment to developing science and technology to deliver exceptional care.”
“Over the past several years, Kimberly-Clark has undertaken a significant transformation to center our portfolio around high-growth, high-margin businesses and rewire our organization to work smarter and faster,” said Su. “We are building a foundation and this transaction is a strong next step in our journey.”
Kenvue is a portfolio of consumer health brands; johnson & johnson In May 2023, J&J will undergo the biggest transformation in its nearly 140-year history. Since then, Kenview stock has fallen about 35% from its initial public offering price. As of Friday’s close, Kenview had a market capitalization of about $27 billion and traded at about $14 per share.
J&J has sold all remaining shares in the consumer goods giant.
The deal comes just weeks after President Donald Trump sent Kenvue’s stock price plummeting after making unsubstantiated claims linking the use of acetaminophen, the active ingredient in Tylenol, during pregnancy to an increased risk of autism. The company has staunchly pushed back against the administration’s accusations, and many medical experts say Tylenol is often the safest and only option for relieving pain and fever in pregnant women.
Acetaminophen is used by more than 100 million Americans annually.
Kenvue Chairman Larry Merlo said in a statement that after a comprehensive strategic review, the board is “confident that this combination represents the best path forward for our shareholders and all other stakeholders.”
Upon completion of the acquisition, three members of Kenview’s board of directors will join Kimberly-Clark’s board of directors. Mr. Hsu will continue to serve as Chairman and CEO.
The combined company will have estimated annual net revenues of approximately $32 billion in 2025 and adjusted earnings before interest, taxes, depreciation and amortization of approximately $7 billion, according to the release.
Kimberly-Clark and Kenview expect to realize approximately $1.9 billion in cost synergies from this transaction over the first three years following closing.
The acquisition comes as Kimberly-Clark and the broader consumer goods industry seek to address changing demand and shopping behaviors, often through deals and divestitures.
Tariffs imposed by the Trump administration are challenging the industry and its profits as prices for key products such as pulp used to make tissue and diapers soar.
In early 2025, Kimberly-Clark discontinued manufacturing private label diapers. costco This is to focus on more premium brands with higher margins.
In June, the company sold a majority stake in its overseas tissue business to Brazilian pulp maker Suzano. The resulting joint venture is intended to protect Kimberly-Clark from volatile input costs and stabilize profits.
Once the deal closes, Kimberly-Clark will own health care brands such as Sudafed and Pepcid, putting the company back in contention with rivals. procter and gamblehas a healthcare division that includes Pepto-Bismol and Vicks.
But despite Kimberly-Clark’s major acquisition, P&G still dwarfs its rivals in both enterprise value and annual revenue. P&G’s market capitalization is approximately $350 billion.
Similar to Kenvue, other spin-off companies have recently proven to be popular acquisition targets. Last year, candy maker Mars announced acquisition plans. Keranovais a snack-focused spinoff of Kellogg’s, while Ferrero acquired WK Kellogg’s, a cereal company, earlier this year.
