Kimberly-Clark Buys Tylenol Producer Kenvue for $40 Billion
Jonathan Akosa
Staff Writer
Kimberly Clark announced its acquisition of Kenvue for $40 billion on November 3rd. Kimberly Clark is a consumer goods company based in Irving, Texas. They are best known for products like Huggies diapers, Kleenex tissues, Scott paper towels and toilet paper, and Pull-Ups diapers. Kenvue is a consumer pharmaceutical company that spun off Johnson & Johnson and is based in Skillman, New Jersey. They are most well-known for their over-the-counter drug products like Tylenol, Motrin, Zyrtec, Benadryl, and Sudafed as well as skincare brands like Neutrogena and other health products like Listerine, Band Aid, and Neosporin.
Kenvue has had recent troubles with the remerging Tylenol pregnancy controversy. The controversy is that some studies have linked taking Tylenol during pregnancy with a child having autism. The first time this information had been in the press was in 2008. Periodically it comes back up but recently there have been studies showing that taking Tylenol while pregnant has nothing to do with a child being autistic. This has sparked controversy in the media because people don’t know what to believe.
The acquisition has negatively affected Kimberly Clark’s stock and positively affected Kenvue’s stock. It has negatively affected Kimberly Clark’s stock because of the Tylenol controversy, but mainly because of the increased chance of the company taking on more debt or diluting the stock. It has positively affected Kenvue’s stock because Kimberly Clark paid more than market value for Kenvue. Kenvue had a market cap of about $30 billion, which is $10 billion under the acquisition price. All Kenvue shareholders will receive $3.50 in cash and .15 of a share of Kimberly Clark for every Kenvue share that they have. This is the main reason for Kenvue’s stock rallying after the announcement of the acquisition.
There are 4 known banks involved in the deal. On the Kimberly Clark side, they have hired PJT Partners and JP Morgan Securities LLC as financial advisors. Kenvue has hired Goldman Sachs & Co. LLC as well as Centerview Partners LLC. Kenvue and Kimberly Clark have each hired two companies because it allows for a check and balances system and ensures that they are getting fair advice. This is a massive deal, and it is rational to get as much valuable input as possible.
The deal was announced on November 3rd and is said to be completed in the second half of 2026. This mega-merger is considered one of the biggest deals of the year. This is something that could have big effects on the Consumer & Retail, and the Healthcare industries and investors will be looking closely at how it ends up affecting both.
Contact Jonathan at jonathan.akosa@student.shu.edu