Mon, 03 Nov 2025

Mon, 03 Nov 2025 Kimberly-Clark to buy Tylenol-maker for more than $40bn

The deal will unite two giants in the over-the-counter health business, bringing together brands like Kleenex and Benadryl.
Kimberly-Clark has agreed to purchase Kenvue, the maker of Tylenol, in a deal worth over $40 billion. The acquisition would create a consumer giant with a portfolio of well-known brands such as Kleenex, Huggies, and Band-Aid. Despite its strong brand lineup, Kenvue's business has struggled due to flagging demand for its products and attacks from the White House on Tylenol's safety record during pregnancy. Kenvue's shares have plummeted nearly 30% in a year, making it a target of activist investors who pushed for changes, including a possible sale. The firm's sales have also declined by almost 4% compared to last year. Kimberly-Clark and Kenvue executives say the deal will accelerate growth due to their complementary strengths. They expect the combined company to generate $32 billion in sales this year. Under the terms of the deal, Kenvue shareholders would receive approximately $21 per share, including $3.50 in cash and a portion of shares in Kimberly-Clark. However, shares in both companies have reacted differently to the news: Kenvue's stock jumped 17%, while Kimberly-Clark's sank more than 10%. The acquisition also brings potential risks, as Kenvue is facing lawsuits over its baby powder products, including claims that it knowingly sold contaminated talcum powder for decades.
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