Liputan6.com, Jakarta Kimberly-Clark Corporation, a leading consumer products manufacturer, has announced a major agreement to acquire Kenvue Inc., the company behind popular wellness brands.
The transaction, valued at approximately $48.7 billion, is designed to create a dominant global leader in the health and wellness sector, combining highly complementary consumer product portfolios.
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Kimberly-Clark makes Kleenex, Huggies nappies and some of the biggest toilet paper brands in the US. As well as Tylenol, Kenvue is known for Band-Aid, Zyrtec, Benadryl, Neutrogena and Aveeno.
As reported by the BBC, both companies are under pressure as price-conscious households increasingly turn to cheaper store-brand versions of products.
Kimberly-Clark and Kenvue Acquisition Details
Kimberly-Clark's acquisition of Kenvue is estimated to have an enterprise value of approximately $48.7 billion, based on Kimberly-Clark's closing stock price on October 31, 2025.
Some sources also mention a value of approximately $40 billion, indicating the monumental scale of this transaction.
Kenvue shareholders will receive $3.50 in cash per share and 0.14625 shares of Kimberly-Clark stock for each Kenvue share they own at closing.
This equates to a total consideration of $21.01 per Kenvue share, based on Kimberly-Clark's closing stock price the previous Friday.
Upon closing, current Kimberly-Clark shareholders are expected to own approximately 54% of the combined company.
Meanwhile, current Kenvue shareholders are expected to own approximately 46% on a fully diluted basis.
This major transaction is expected to close in the second half of 2026, pending shareholder and regulatory approvals.
The Reason Behind the Acquisition
Kenvue's business and stock have been struggling, plummeting nearly 30% in a year, making it a target for activist investors, who have been buying shares and urging the company to make changes, including a possible sale.
The company's stock plummeted last month when the Trump administration publicly linked Tylenol use during pregnancy to autism, despite scientists saying there is no conclusive evidence.
Sales in the first nine months of this year were down nearly 4% compared to 2024.
In their announcement of the deal, executives said the companies had "complementary strengths" and a combination would accelerate growth.
They said they expected to complete the transaction in the second half of next year.
Together, the firms are on track to generate $32bn in sales in this year, they said.
"With a broader product range and greater reach, the combined company will be a global health and wellness leader," they said.
Challenges and Risks of the Kimberly-Clark Acquisition
Despite the potential for significant synergies, the acquisition is not without significant challenges and risks.
Market reaction saw Kimberly-Clark shares plummet following the announcement, while Kenvue shares surged.
Investors expressed skepticism due to execution risks and Kenvue's potential legal liabilities.
One major risk is the legal challenges Kenvue is facing regarding claims that its talcum powder causes cancer.
Additionally, Kenvue is also facing claims related to Tylenol and autism.
Mike Hsu, CEO of Kimberly-Clark, stated that the Kenvue acquisition is "a strong next step in the company's significant transformation journey."
“We are excited to bring together two iconic companies to create a global health and wellness leader,” Mike Hsu, Kimberly-Clark chairman and CEO, said in a statement.
Larry Merlo, Kenvue’s chairman, claimed the deal would create a “uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead”.