Kimberly-Clark has agreed to acquire Johnson & Johnson (J&J) consumer health spinout Kenvue for $48.7bn.
One of America’s largest consumer health companies, Kimberly-Clark said it would acquire all of Kenvue’s common stock, creating a conglomerate that will generate annual revenue of $32bn.
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According to the deal, shareholders in Kenvue – a company that J&J siphoned off in 2023 – will receive $3.50 per share, as well as 0.14625 of Kimberly-Clark shares for each Kenvue share held at closing. The total consideration to Kenvue investors is $21.01 per share.
The transaction, which is expected to close in the second half of 2026, will see Kimberly-Clark shareholders own around 54% of the combined company while Kenvue shareholders will own the remaining 46%.
The deal is one of the largest in the consumer sector for several years and adds to a strong mergers and acquisition (M&A) pickup across the pharmaceutical industry in 2025.
However, the deal is not without its points of contention. Kenvue’s top-selling product is Tylenol (acetaminophen), the common over-the-counter (OTC) pain medication that has been under scrutiny by the US Government over safety concerns. US President Donald Trump has made claims that the medicine, known as paracetamol in most other countries, has been linked to autism when used during pregnancy.
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By GlobalDataThe US Food and Drug Administration (FDA) updated the label for Tylenol in September 2025, with a warning added for pregnant women that the drug can “increase the risk of neurological conditions such as autism and ADHD in children”. Kenvue has since filed a petition to the FDA rebuking the claims.
As well as Tylenol, Kenvue is known for making Band-Aid, antihistamines Zyrtec (cetirizine) and Benadryl (budesonide), and skincare brands Neutrogena and Aveeno.
Kimberly-Clark is therefore looking beyond Tylenol, stating that the transaction “brings together two iconic American companies to create a portfolio of complementary products”.
When asked about the Tylenol controversy during a conference call, Kimberly-Clark’s CEO Mike Hsu said: “We reviewed this transaction in the same way that we run the business, with incredible rigor, thoughtfulness and discipline. The board carefully considered all the risks and all the opportunities. We had multiple sessions with the board with the world’s foremost scientific, medical, regulatory and legal experts.
“It was definitely not opportunistic, definitely strategic.”
