Kimberly-Clark Corporation, a consumer products company, has agreed to acquire Kenvue, the former consumer products and over-the-counter (OTC) healthcare business of Johnson & Johnson (J&J) and now an independent company, for $48.7 billion.  

The acquisition of Kenvue comes approximately two years after J&J completed its move to demerge its consumer products and OTC business into a separate publicly traded company. J&J initially owned 89.6% of Kenvue following Kenvue’s initial public offering in 2023 but divested its stake through a series of transactions, which were completed in 2024. 

Kenvue operates in three major segments: Self Care, which includes OTC healthcare products; Skin Care and Beauty, which includes face, body, hair, and sun care products; and Essential Health, which includes baby and women’s care products  Kenvue posted sales of $15.5 billion in fiscal year 2024 (ending December 29, 2024), relatively flat year over year. More recently, its third-quarter 2025 net sales decreased 3.5% vs the prior year period, primarily reflecting organic sales decline of 4.4%, partially offset by foreign currency benefit of 1.0%. For the full-year 2025, the company issued financial guidance that net sales and organic sales are expected to be down low-single-digits, assuming approximately neutral impact from foreign currency translation. 

Based on current projections, the combined company would generate 2025 annual net revenues of approximately $32 billion and approximately $7 billion of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The companies have identified approximately $1.9 billion in cost synergies and approximately $500 million in incremental profit from revenue synergies, partially offset by reinvestment of approximately $300 million. The cost synergies are expected to be captured in the first three years following closing, and the revenue synergies are expected to be captured within four years post close. Kimberly-Clark expects $2.5 billion of cash costs to achieve these synergies, invested within the first two years post close. 

Mike Hsu, current Chairman and Chief Executive Officer (CEO) of Kimberly-Clark, will be the Chairman and CEO of the combined company. At closing, three members of the Kenvue Board will join the Kimberly-Clark Board. The combined company will maintain Kimberly-Clark’s headquarters in Irving, Texas and continue to have a presence in Kenvue’s locations. 

Under the agreement, which has been unanimously approved by each company’s Board of Directors, Kenvue shareholders will receive $3.50 per share in cash as well as 0.14625 Kimberly-Clark shares for each Kenvue share held at closing, for a total consideration to Kenvue shareholders of $21.01 per share, based on the closing price of Kimberly-Clark shares as of October 31, 2025. Upon closing of the transaction, current Kimberly-Clark shareholders are expected to own approximately 54%, and current Kenvue shareholders are expected to own approximately 46% of the combined company on a fully diluted basis. 

The transaction is expected to close in the second half of 2026, subject to the receipt of Kenvue and Kimberly-Clark shareholder approvals, regulatory approvals, and satisfaction of other customary closing conditions.  

Source: Kimberly-Clark