US EditionKimberly-Clark buying Tylenol maker Kenvue in $48.7 billion deal
The $48.7 billion deal combines top consumer health brands to create a company with approximately $32 billion in annual revenue, pending shareholder approval.
- In a Monday statement, Kimberly‑Clark Corp. said it will acquire Kenvue Inc., which makes Tylenol, in a $48.7 billion deal.
- After a months‑long strategic review that began in July, Kenvue Inc. was spun out of Johnson & Johnson in 2023 and faced leadership changes and mounting litigation risks, the Kenvue board said.
- The transaction is structured as cash plus stock, with Kenvue shareholders receiving $3.50 per share plus 0.14625 Kimberly‑Clark shares, implying $21.01 per share and a $40.32 billion equity value, while Kimberly‑Clark shareholders will own about 54% of the combined company.
- Kimberly‑Clark shares plunged 16% after the announcement, while Michael Hsu, Kimberly‑Clark chairman and chief executive officer, will lead the combined company; the deal is expected to close in the second half of next year.
- The deal also surfaced amid political scrutiny after President Donald Trump linked Tylenol to autism, which Kenvue disputed; the combined company will have roughly $32 billion in annual revenues.
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These 2 Dividend Kings Are Combining in a $48.7 Billion Megadeal. Is It A Win-Win for Dividend Investors?
Key PointsKimberly-Clark is merging with Kenvue. The deal brings together two companies with long histories of growing their dividends. The transaction creates a larger-scale company that will save money, but it comes with risks. 10 stocks we like better than Kenvue › Kimberly-Clark (NASDAQ: KMB) has agreed to acquire Kenvue (NYSE: KVUE) in a cash-and-stock deal, valuing Kenvue at $48.7 billion. The merger will create a $32 billion global leader…
The announcement comes weeks after President Trump made claims that linked Tylenol to autism in unborn babies of pregnant women, which brought down Kenvue’s actions. The company has rejected the Trump administration’s accusations.
Options Corner: Kimberly-Clark's Implosion Offers An Unusual Informational Arbitrage Opportunity - Kimberly-Clark (NASDAQ:KMB)
Kimberly-Clark Corporation (NASDAQ:KMB) rattled its shareholders when it earlier announced its acquisition of consumer goods giant Kenvue Inc (NYSE:KVUE). Ordinarily, such an acquisition might make sense due to the implied expansion of the acquiring entity's product portfolio. However, Kenvue has been ground zero for a controversy involving the flagship over-the-counter medication Tylenol. Looking at the terms of the deal, the cash and stock tra…
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