Kimberly-Clark to Acquire Tylenol Maker Kenvue for $48.7B Creating Consumer Staple Giant

Kimberly-Clark has announced a $48.7 billion cash-and-stock deal to acquire Kenvue, the Johnson & Johnson spin-off known for brands including Tylenol, Band-Aid, Listerine, and Neutrogena. Despite recent controversy and litigation concerns surrounding Tylenol, particularly allegations from the Trump administration linking acetaminophen use during pregnancy to autism, Kimberly-Clark views the acquisition as a strategic move to combine complementary portfolios and accelerate growth. The transaction values Kenvue at a 46% premium to its prior stock price, with Kimberly-Clark shareholders expected to hold 54% of the combined company post-acquisition, which is targeted to close in the second half of 2026. Together, the combined companies are projected to generate around $32 billion in revenue this year and aim to leverage Kimberly-Clark's commercial capabilities alongside Kenvue’s health science innovations. Analysts express skepticism about the deal's premium price given Kenvue’s legal risks and declining sales, but Kimberly-Clark emphasizes the value of the brand portfolio and expected synergies. The acquisition forms a consumer giant with household and healthcare products spanning multiple life stages.