Kimberly-Clark, the maker of household staples like Huggies diapers and Kleenex tissues, announced on Monday, November 3, 2025, that it has reached a definitive agreement to acquire Kenvue, the embattled owner of Tylenol and Band-Aid, in a landmark deal valued at approximately $48.7 billion. The transaction, which combines cash and stock, marks one of the largest mergers of the year and will unite two of the most recognizable portfolios in the consumer health and personal care sector.
The agreement, unanimously approved by both companies' boards, will see Kimberly-Clark acquire all outstanding shares of Kenvue in a deal that values Kenvue at about $21.01 per share, based on Kimberly-Clark’s closing stock price as of October 31, 2025. The total equity consideration, excluding debt, comes in at around $40 billion. Upon closing, which is expected in the second half of 2026 pending regulatory and shareholder approvals, Kimberly-Clark shareholders will own about 54% of the combined entity, with Kenvue shareholders holding the remaining 46%.
The merger brings together a stable of powerhouse brands. Kimberly-Clark’s Huggies, Kleenex, and Cottonelle will now sit alongside Kenvue’s Tylenol, Band-Aid, Listerine, Neutrogena, Aveeno, and Johnson’s Baby Shampoo. In total, the combined company will boast 10 billion-dollar brands, touching nearly half the global population at every stage of life, according to a joint press release from the companies.
“We are excited to bring together two iconic companies to create a global health and wellness leader,” said Mike Hsu, Kimberly-Clark’s Chairman and Chief Executive Officer, in a statement reported by CNBC and PRNewswire. “Kenvue is uniquely positioned at the intersection of CPG and healthcare, 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.” Hsu, who has led Kimberly-Clark’s pivot toward higher-growth, higher-margin businesses, will remain chairman and CEO of the new company.
Kenvue Chair Larry Merlo echoed the optimism, stating, “Following the Board’s comprehensive review of strategic alternatives for Kenvue, we are pleased to have reached this agreement with Kimberly-Clark that delivers significant upfront value for our shareholders and substantial upside potential through ownership in the combined company.” Merlo 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.”
The deal arrives at a turbulent moment for Kenvue. The company was spun off from Johnson & Johnson in May 2023, in what The New York Times called the biggest shake-up in J&J’s nearly 140-year history. However, Kenvue’s share price has struggled since its IPO, falling almost 35% from its initial offering price and trading at about $14 per share just before the announcement. Johnson & Johnson has since divested all of its remaining stake in Kenvue.
Adding to the headwinds, Kenvue has recently been embroiled in controversy after the Trump administration made unfounded claims linking acetaminophen—the active ingredient in Tylenol—to autism when taken during pregnancy. In September, former President Trump urged pregnant women to “fight like hell not to take it.” These assertions, which lack clear scientific evidence, sent Kenvue’s stock sharply lower and have fueled a wave of lawsuits alleging the drug causes neurodevelopmental disorders. Kenvue has staunchly denied the claims, with CEO Kirk Perry stating on November 3, “the company stood firmly behind the science and the safety of our products.”
Despite the legal and reputational challenges, Tylenol remains a staple in American medicine cabinets, with over 100 million Americans using acetaminophen annually. According to The New York Times, Tylenol alone generates roughly $1 billion in annual sales for Kenvue. The company also sells baby powder products that have been the source of extensive legal battles over alleged links to cancer, though Johnson & Johnson has agreed to indemnify Kenvue in the U.S. and Canada for related liabilities. Nevertheless, lawsuits continue in other jurisdictions, including the UK.
Kimberly-Clark’s acquisition of Kenvue is part of a broader trend in the consumer packaged goods industry, where companies are seeking to adapt to shifting consumer demand and shopping behaviors through strategic mergers and divestitures. Earlier this year, Kimberly-Clark stopped making private-label diapers for Costco to focus on more premium, higher-margin brands. In June, it sold a majority stake in its international tissue business to Brazilian pulp giant Suzano, forming a joint venture designed to shield the company from volatile input costs.
The combined company is projected to generate approximately $32 billion in annual net revenue and about $7 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025, according to company statements. Executives anticipate around $2 billion in cost synergies within three years of closing, though such savings often come with layoffs and restructuring. The transaction is expected to be accretive to Kimberly-Clark’s adjusted earnings per share by the second year post-close.
In terms of competition, the deal positions Kimberly-Clark as a more formidable rival to Procter & Gamble, the consumer products behemoth with a $350 billion market capitalization and a broad health-care division that includes brands like Pepto-Bismol and Vicks. Yet, even with the addition of Kenvue’s brands, Kimberly-Clark will remain smaller than P&G in both enterprise value and annual revenue.
Leadership and governance of the new company will reflect the combined nature of the business. Three Kenvue board members will join the Kimberly-Clark board upon closing. The headquarters will remain in Irving, Texas, but the company will also maintain a significant presence at Kenvue’s campus in Summit, New Jersey.
The acquisition comes amid a spate of similar deals in the sector. Notably, Mars recently acquired Kellanova, a snacking-focused spinoff of Kellogg, while Ferrero bought W.K. Kellogg, the cereal business, earlier this year. These moves highlight how spinoffs and mergers are reshaping the consumer goods landscape as companies vie for growth and scale in a challenging economic environment.
Kimberly-Clark and Kenvue held a joint investor conference call on the morning of the announcement to discuss the transaction in detail, underscoring their confidence in the deal’s strategic rationale and growth potential. Both companies emphasized their shared mission to deliver science-backed, trusted products that play a meaningful role in homes and communities worldwide.
As the dust settles on this blockbuster merger, investors and consumers alike will be watching closely to see how the combined company navigates legal hurdles, market competition, and the ever-evolving needs of families around the globe.
