Kimberly-Clark Plans $40B Acquisition of Kenvue to Form Global Health Giant

Kimberly-Clark, led by CEO Michael Hsu since 2019, has agreed to acquire Kenvue, the Johnson & Johnson spinoff that owns Tylenol, in a cash-and-stock deal valued at approximately $48.7 billion. This acquisition will create a global health and wellness company with combined annual revenues of around $32 billion and a portfolio of iconic billion-dollar brands. Kimberly-Clark shares fell by 15% following the announcement, while Kenvue's shares rose by 20%, despite Kenvue facing a public-relations crisis over claims linking acetaminophen use during pregnancy to autism. The transaction, expected to close in the second half of 2026 pending regulatory and shareholder approvals, will see Kenvue shareholders owning about 46% of the combined entity. The deal enhances Kimberly-Clark's exposure to growing health and wellness categories, aligning with consumer trends prioritizing health. CEO Mike Hsu, praised for his leadership and vision, is set to lead the combined company through this significant expansion.