Updated 3:36 p.m. EST on Nov. 3
Kenvue Inc.’s time as a stand-alone public company has been briefer than expected.
Kenvue, whose brands include Neutrogena, Aveeno, OGX and Tylenol, was spun out of Johnson & Johnson in 2023. In July, following the ousting of its chief executive officer, it revealed that it was carrying out a strategic review “to unlock shareholder value and reach its full potential,” including assessing its current portfolio.
Related Articles
On Monday, those findings became clear when Kleenex and Huggies owner Kimberly-Clark Corp. announced it is acquiring Kenvue in a deal valued at $48.7 billion. The transaction is expected to close in the second half of 2026, subject to regulatory approvals.
“We are excited to bring together two iconic companies to create a global health and wellness leader,” said Mike Hsu, Kimberly-Clark chairman and CEO. “Kenvue is uniquely positioned at the intersection of CPG and health care, with exceptional talent and a differentiated brand offering serving attractive consumer health categories. With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life.”
Larry Merlo, Kenvue chair of the board, added, “Bringing together Kenvue and Kimberly-Clark creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead. We are excited about this next chapter for Kenvue and confident this combination represents the best path forward for our shareholders and all other stakeholders.”
Shares of Kenvue were up 14 percent and Kimberly-Clark’s down 13.9 percent.
“With this deal, Kenvue’s short journey as a stand-alone public company will come to an end, and Kimberly-Clark is making a bet that the Tylenol controversy will wane and it can steward a more diverse portfolio [10 billion-dollar brands] while realizing benefits of scale,” Jon Andersen, an analyst at William Blair, said of the news, referring to the recent Tylenol controversy.
In July, U.S. President Donald Trump made unproven claims that taking Tylenol during pregnancy can cause autism in children. This has been followed by legal scrutiny, with Texas Attorney General Ken Paxton filing a lawsuit against Kenvue and Johnson & Johnson, claiming they “deceptively” marketed Tylenol to pregnant mothers despite knowing that early exposure to acetaminophen, Tylenol’s only active ingredient, leads to a significantly increased risk of autism and other disorders.
In response, Kenvue said it is “deeply concerned by the perpetuation of misinformation on the safety of acetaminophen and the potential impact that could have on the health of American women and children.”
Addressing this during a call with analysts Monday, 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 of the risks and all the opportunities. And then we had multiple sessions with the board, with the world’s foremost scientific, medical, regulatory and legal experts. The work affirms that this is a generational value creation opportunity for both companies.”