Kimberly-Clark agreed to acquire Johnson & Johnson (J&J) consumer health spinoff Kenvue for $48.7 billion.
Kimberly-Clark, one of the largest U.S. consumer health companies, said it would acquire all of Kenvue’s common stock, creating a conglomerate that will generate annual revenue of $32 billion.
Under the deal, shareholders of Kenvue, a company J&J spun off in 2023, will receive $3.50 per share as well as 0.14625 shares of Kimberly-Clark for each Kenvue share they own at closing. Total consideration for Kenvue investors is $21.01 per share.
The transaction, which is expected to close in the second half of 2026, will see Kimberly-Clark shareholders own about 54% of the combined company, while Kenvue shareholders will own the remaining 46%.
The deal is one of the largest in the consumer sector in several years and adds to a strong rebound in mergers and acquisitions (M&A) across the pharmaceutical industry in 2025.
However, the agreement is not without points of contention. Kenvue’s best-selling product is Tylenol (acetaminophen), the common over-the-counter pain reliever that has been under scrutiny by the U.S. government for safety concerns. US President Donald Trump has claimed that the drug, known as acetaminophen in most other countries, has been linked to autism when used during pregnancy.
The US Food and Drug Administration (FDA) updated Tylenol’s label in September 2025, adding a warning for pregnant women that the drug may “increase the risk of neurological diseases such as autism and ADHD in children.” Kenvue has since filed a petition with the FDA refuting the claims.
In addition to Tylenol, Kenvue is known for making Band-Aid, the antihistamines Zyrtec (cetirizine) and Benadryl (budesonide), and the skin care brands Neutrogena and Aveeno.
Kimberly-Clark is therefore looking beyond Tylenol, saying the transaction “brings together two iconic American companies to create a portfolio of complementary products.”
When asked about the Tylenol controversy during a conference call, Kimberly-Clark CEO Mike Hsu said: “We reviewed this transaction the same way we ran the business, with incredible rigor, consideration and discipline. The board carefully considered all risks and all opportunities. We had multiple board sessions with the world’s leading scientific, medical, regulatory and legal experts.
“It was definitely not opportunistic, but definitely strategic.”
“Kimberly-Clark Buys Troubled Tylenol Maker Kenvue for $48.7 Billion” was created and originally published by Pharmaceutical Technology, a brand owned by GlobalData.