Tylenol, Kleenex, Band-Aid and more put under one roof in $48.7 billion
consumer brands deal
[November 04, 2025] By
MICHELLE CHAPMAN
Kimberly-Clark is buying Tylenol maker Kenvue in a cash and stock deal
worth about $48.7 billion, creating a massive consumer health goods
company.
Shareholders of Kimberly-Clark will own about 54% of the combined
company. Kenvue shareholders will own about 46% in what is one of the
largest corporate takeovers this year. The deal must still be approved
by the shareholders of both companies.
The combined company will have a huge stable of household brands under
one roof, putting Kenvue’s Listerine mouthwash and Band-Aid side-by-side
with Kimberly-Clark’s Cottonelle toilet paper, Huggies and Kleenex
tissues. It will also generate about $32 billion in annual revenue.
Kenvue has spent a relatively brief period as an independent company,
having been spun off by Johnson & Johnson two years ago. J&J first
announced in late 2021 that it was splitting its slow-growth consumer
health division from the pharmaceutical and medical device divisions.
Kenvue has since been targeted by activist investors unhappy about the
trajectory of the company and Wall Street appeared to anticipate some
heavy lifting ahead for Kimberly-Clark.
Kenvue’s stock jumped 12% Monday afternoon, while shares of
Kimberly-Clark, based outside of Dallas, slumped by nearly 15%.
Kenvue shares have shed nearly 50% of their value since approaching $28
in the spring of 2023. Morningstar analyst Keonhee Kim said Kenvue’s
volatile journey as a public company may have been driven in part by
poor execution and a lack of experience operating as a stand-alone
business.
He said the leadership of a more-established consumer products company
like Kimberly-Clark could help unlock some of Kenvue’s value.
He also noted that Kenvue brands include Neutrogena, Benadryl and other
names that have been in store consumer health aisles for decades. Kim
said he thinks Kimberly-Clark may have seen upside in adding those
products.
“I think that may have made the deal a lot more attractive ...
especially after the past couple of months of Kenvue’s stock price
decline,” he said.
Kenvue and Tylenol have been thrust into the national spotlight this
year as President Donald Trump and Health Secretary Robert F. Kennedy
Jr. promoted unproven and in some cases discredited ties between
Tylenol, vaccines and the complex brain disorder autism.
Trump then urged pregnant women against using the medicine. That went
beyond Food and Drug Administration advice that doctors “should consider
minimizing” the painkiller acetaminophen’s use in pregnancy — amid
inconclusive evidence about whether too much could be linked to autism.
Kennedy reiterated the FDA guidance during a press conference last week.
He said that there isn't sufficient evidence to link the drug to autism.
“We have asked physicians to minimize the use to when it's absolutely
necessary,” he said.
Kenvue has continued to push back on the Trump administration's public
statements about Tylenol and acetaminophen, the active ingredient it
contains.
“We strongly disagree with allegations that it does and are deeply
concerned about the health risks and confusion this poses for expecting
mothers and parents," Kenvue said in a statement on its website.
[to top of second column] |
Extra Strength Tylenol is shown in Carmel, Ind., Tuesday, Sept. 23,
2025. (AP Photo/Michael Conroy, file)
 The merger could face other hurdles.
Citi Investment Research analyst Filippo Falorni said he is
concerned about the deal’s size given the recent history in the
sector, particularly given the challenges faced by Kenvue.
In July, Kenvue announced that CEO Thibaut Mongon was leaving in the
midst of a strategic review, with the company under mounting
pressure from activist investors unhappy about growth. Critics say
Kenvue has relied too much on its legacy brands and failed to
innovate.
Industry analysts also point out the poor track record for mergers
involving consumer packaged goods companies. In September, Kraft
Heinz said it would break up its decade-old merger. Its net revenue
has fallen every year since 2020.
Kimberly-Clark and Kenvue, like Kraft Heinz, are facing increasing
competition from cheaper store brands. In 2024, 51% of toilet paper
and other household paper products sold in the U.S were store
brands, according to Circana, a market research company, while store
brands held a 24% share of sales of health products, including
medications and vitamins.
On Monday, a bottle of 100 extra-strength Tylenol caplets cost
$10.97 on Walmart's website. A bottle of 100 extra-strength
acetaminophen caplets from Walmart's Equate brand cost $1.98.
Inflation drove some of that buyer behavior, Circana said. Shoppers
are also shifting their purchases to stores with more private-label
brands, like Aldi and Costco. And stores are improving their
offerings and adding more of them; last year, Walmart and Target
both launched new store brands to complement their existing ones.
Still, both Kimberly-Clark and Kenvue make name-brand products in
segments where consumers are less likely to shift to store brands,
including hair care, skin care, feminine products and mouth care,
according to Circana. Kenvue owns brands like Aveeno and Neutrogena,
for example, while Kimberly-Clark makes Kotex and Depend.
Kimberly-Clark Chairman and CEO Mike Hsu will be chairman and CEO of
the combined company. Three members of the Kenvue's board will join
Kimberly-Clark's board at closing. The combined company will keep
Kimberly-Clark’s headquarters in Irving, Texas, but there will be
significant operations around Kenvue facilities and locations as
well.
The deal is expected to close in the second half of next year. It
still needs approval from shareholders of both both companies.
Kenvue shareholders will receive $3.50 per share in cash and 0.14625
Kimberly-Clark shares for each Kenvue share held at closing. That
amounts to $21.01 per share, based on the closing price of
Kimberly-Clark shares on Friday.
Kimberly-Clark and Kenvue said that they identified about $1.9
billion in cost savings that are expected in the first three years
after the transaction’s closing.
___
AP Health Writer Tom Murphy contributed to this report.
All contents © copyright 2025 Associated Press. All rights reserved |
