Tylenol, Kleenex, Band-Aid and more put under one roof in $48.7 billion consumer brands deal

Kimberly-Clark is buying New Jersey-based Tylenol maker Kenvue in a cash and stock deal worth about $48.7 billion, creating a massive consumer health goods company.

Shareholders of Kimberly-Clark will own about 54% of the combined company. Kenvue shareholders will own about 46% in what is one of the largest corporate takeovers this year.

The combined company will have a huge stable of household brands under one roof, putting Kenvue's Listerine mouthwash and Band-Aid side-by-side with Kimberly-Clark's Cottonelle toilet paper, Huggies and Kleenex tissues.

It will also generate about $32 billion in annual revenue.

Kenvue spun off by Johnson and Johnson two years ago

Kenvue, based in Summit, has spent a relatively brief period as an independent company, having been spun off by Johnson & Johnson two years ago.

J and J first announced in late 2021 that it was splitting its slow-growth consumer health division from the pharmaceutical and medical device divisions.

Kenvue has since been targeted by activist investors unhappy about the trajectory of the company and Wall Street appeared to anticipate some heavy lifting ahead for Kimberly-Clark.

Shares of Kimberly-Clark, based in just outside of Dallas, slumped 13% Monday. Kenvue's stock jumped more than 15%.

Read More: Major job cuts hit Novo Nordisk in Plainsboro, New Jersey

Tylenol backlash after unproven Trump administration claims

Kenvue and Tylenol have been thrust into the national spotlight this year as President Donald Trump and Health Secretary Robert F. Kennedy Jr. promoted unproven and in some cases discredited ties between Tylenol, vaccines and the complex brain disorder autism.

Trump then urged pregnant women against using the medicine.

That went beyond Food and Drug Administration advice that doctors "should consider minimizing" the painkiller acetaminophen's use in pregnancy — amid inconclusive evidence about whether too much could be linked to autism.

Kennedy reiterated the FDA guidance during a press conference last week. He said that there isn't sufficient evidence to link the drug to autism.

"We have asked physicians to minimize the use to when its absolutely necessary," he said.

Kenvue has continued to push back on the Trump administration's dialogue.

"Nothing is more important to us than the health and safety of the people who use our products," Kenvue said in a statement on its website. "We believe independent, sound science clearly shows that taking acetaminophen does not cause autism. We strongly disagree with allegations that it does and are deeply concerned about the health risks and confusion this poses for expecting mothers and parents."

Kimberly-Clark and Kenvue to share leadership, locations

In July Kenvue, announced that CEO Thibaut Mongon was leaving in the midst of a strategic review with the company under mounting pressure from activist investors.

Kimberly-Clark Chairman and CEO Mike Hsu will be chairman and CEO of the combined company. Three members of the Kenvue's board will join Kimberly-Clark's board at closing.

The combined company will keep Kimberly-Clark's headquarters in Irving, Texas, but there will be significant operations around Kenvue facilities and locations as well.

The deal is expected to close in the second half of next year. It still needs approval from shareholders of both both companies.

Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing. That amounts to $21.01 per share, based on the closing price of Kimberly-Clark shares on Friday.

Kimberly-Clark and Kenvue said that they identified about $1.9 billion in cost savings that are expected in the first three years after the transaction's closing.
___
(By MICHELLE CHAPMAN AP Business Writer, AP Health Writer Tom Murphy contributed to this report. Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Report a correction 👈 | 👉 Contact our newsroom