The consumer-products firms Kimberly‑Clark Corporation and Kenvue Inc. have announced a deal that will bring major household brands under one umbrella. Kimberly-Clark has agreed to acquire Kenvue in a deal valued at approximately $48.7 billion in a mix of cash and stock.
Under the terms of the deal, Kimberly-Clark shareholders will hold about 54% of the combined entity, while Kenvue shareholders will own around 46%. The merger combines Kimberly-Clark’s portfolio — including brands such as Kleenex, Huggies and Kotex — with Kenvue’s well-known names like Tylenol, Band-Aid, Neutrogena and Listerine.
The combined company is expected to generate around $32 billion in annual revenue and to realize roughly $1.9 billion in cost savings within three years of closing. From a strategic viewpoint, Kimberly-Clark said the move aligns with its ambition to shift toward higher-growth, higher-margin segments amid a challenging consumer-goods environment.
That environment includes greater pressure from store-brands and private labels, as well as cost inflation and changing shopper behaviour. On the other side of the coin, Kenvue has faced a tough run since spinning off from Johnson & Johnson in 2023, with activism, leadership turnover and share-price decline.
Investors reacted sharply. Kenvue’s shares rose by double-digits after the announcement; Kimberly-Clark’s shares fell as investors weighed the size of the deal and the risks of absorbing a business with legal overhangs and structural challenges. Approval still rests with shareholders of both companies and the deal is slated to close in the second half of 2026.
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