Kimberly-Clark to acquire Tylenol owner Kenvue in $48.7 billion deal

Kimberly-Clark is buying Tylenol maker Kenvue in a cash and stock deal valued at $48.7 billion, the companies announced Monday.

The deal merges brands like Huggies, Kleenex and Cottonelle with Band-Aid and Tylenol, creating a consumer health giant.

Shareholders of Kimberly-Clark will own about 54% of the combined company, while Kenvue shareholders will own about 46%, the companies said.

The combined company would generate an estimated 2025 annual net revenues of roughly $32 billion, according to the release.

“Over the last several years, Kimberly-Clark has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster,” Mike Hsu, Kimberly-Clark chairman and chief executive officer, said in a statement. “We have built the foundation and this transaction is a powerful next step in our journey.”

Mr. Hsu will continue his position at the combined company, and three members of the Kenvue Board will join the Kimberly-Clark Board.

“We look forward to working with the Kenvue team to bring these companies together, and are confident that we will drive significant value for our combined shareholders,” he continued. 

The transaction is expected to close in the second half of 2026. It’s unclear how the internal structure of the combined company may change, such as through layoffs.

Kenvue spun out of Johnson & Johnson in May 2023.

In July, Kenvue announced that CEO Thibaut Mongon was leaving, and board member Kirk Perry is serving as interim CEO.

Two months later, President Trump and Secretary of Health and Human Services Robert F. Kennedy Jr. said that taking Tylenol during pregnancy is linked to an increased risk of autism, despite limited and contradictory evidence.

The state of Texas sued Kenvue and Johnson & Johnson last week, alleging that the companies deceptively marketed the medication to pregnant women despite alleged links to autism and other disorders.

Kenvue dismissed any correlation, arguing that such claims and lawsuits misinform consumers about the over-the-counter medication.