Kenvue Shares Soar 16% After Inking $48.7B Deal With Kimberly-Clark

Kimberly-Clark Corporation (KMB) said on Monday that it has entered into an agreement to purchase Tylenol manufacturer Kenvue (KVUE) in a deal valued at about $48.7 billion.

Under the deal, Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction. Kenvue shareholders will receive $3.50 per share in cash, as well as 0.14625 Kimberly-Clark shares for each Kenvue share held at closing, for a total consideration of $21.01 per share to Kenvue shareholders. This represents a premium of about 46% from KVUE’s closing price on Friday and values Kenvue at an enterprise value of approximately $48.7 billion, Kimberly-Clark said.

Ownership Structure

Upon closing, Kimberly-Clark shareholders are expected to own approximately 54% and current Kenvue shareholders are expected to own approximately 46% of the combined company, it added. Kimberly-Clark CEO Mike Hsu will be the chief executive of the combined company, and three members of the Kenvue Board will join the Kimberly-Clark board at the closing of the transaction.

The transaction has been unanimously approved by the Board of Directors of both companies, Kimberley-Clark said. It is expected to close in the second half of 2026.

According to Kimberly, Kenvue is uniquely positioned at the intersection of consumer packaged goods and healthcare, and the combination of the two companies can create a combined portfolio of complementary products. While Kimberly-Clark is known for Huggies diapers and Kleenex, Kenvue’s popular products include Band-Aid, Benadryl, Listerine, Neutrogena, and Tylenol.

Notably, market expert Jim Cramer said on Monday that he sees the deal creating a “real rival” to Procter & Gamble (PG).

Kenvue Chair Larry Merlo, meanwhile, said that the board is confident that the combination represents the "best path forward" for shareholders.

Kimberly-Clark expects the combined company to generate approximately $32 billion in annual net revenues and approximately $7 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) based on current projections for 2025.

KVUE shares rose 16% at the time of writing, while KMB stock fell 13%.  

The Tylenol Issue

The deal comes on the heels of turbulence at Kenvue, including President Trump linking its popular painkiller Tylenol to autism. In late September, the President linked autism to childhood vaccine use and the use of Tylenol by women when pregnant. Though the claims are not backed by scientific evidence, it has created a divide in opinion on the popular drug. Kenvue has maintained that Tylenol is safe and its consumption is unrelated to autism. 

Kenvue was spun off from JNJ in 2023. In 2024, Kenvue’s net sales were $15.5 billion, of which Tylenol is estimated to account for about $1 billion.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around KVUE stayed within the ‘bullish’ territory while message volume stayed at ‘normal’ levels.

KVUE stock is down by 22% this year and by about 28% over the past 12 months. 

Read also: TG Therapeutics Stock Soars After Company Ups Guidance For Multiple Sclerosis Drug

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