Kimberly‑Clark announced a $48.7 billion enterprise‑value acquisition of Kenvue, a former Johnson & Johnson spin‑off, in a cash‑and‑stock transaction. Kenvue shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly‑Clark for each Kenvue share, valuing Kenvue at $21.01 per share based on Kimberly‑Clark’s closing price on Friday, October 31, 2025.
The transaction will combine the two companies into a global health‑and‑wellness business with annual revenue of approximately $32 billion. The combined portfolio will include Huggies, Kleenex, Tylenol, Band‑Aid, Neutrogena and Listerine, among other billion‑dollar brands.
Management projects net synergies of $2.1 billion over four years, consisting of $1.9 billion in cost savings and $500 million in incremental revenue, offset by a $300 million reinvestment requirement. The company expects to realize these synergies by the end of 2029.
The deal is expected to close in the second half of 2026, subject to shareholder and regulatory approvals. The transaction also addresses Kenvue’s ongoing legal exposure related to Tylenol and talc litigation, and positions Kimberly‑Clark to shift toward higher‑margin consumer‑health categories.
Kenvue’s Q3 2025 results showed revenue of $3.1 billion, down 3.5% year‑over‑year, and an adjusted operating income margin of 21.5% versus 22.1% in the prior year. The decline was driven by weakness in over‑the‑counter products and inventory adjustments. Kimberly‑Clark’s Q3 2025 net sales were $4.2 billion, flat year‑over‑year, with an adjusted EPS of $1.82.
The acquisition follows Kenvue’s strategic review that saw CEO Thibaut Mongon depart in July and Kirk Perry assume the role of interim and later permanent CEO. The deal also follows Kimberly‑Clark’s recent portfolio realignment, including the exit of its Brazilian tissue business and the planned spin‑off of its international tissue unit.
Analysts note that the transaction values Kenvue at roughly 14.3 times its last‑12‑month adjusted EBITDA, or 8.8 times when synergies are included. The deal is expected to create a company that rivals Procter & Gamble and Unilever in revenue.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.