Kimberly-Clark’s $48.7B Power Move: Acquiring Kenvue to Forge a Health Industry Giant

Kimberly-Clark Corporation is set to acquire Kenvue Inc., a global leader in consumer health brands, in a landmark $48.7 billion transaction. The deal combines Kimberly-Clark’s personal care portfolio, including Huggies and Kleenex, with Kenvue’s consumer health products such as Tylenol, Neutrogena, Band-Aid, and Listerine.

This strategic acquisition creates a powerful health and wellness company with projected annual revenues of $32 billion and adjusted EBITDA of $7 billion in 2025. The merger is expected to generate run-rate synergies of $2.1 billion, including cost savings and revenue enhancements, with Kimberly-Clark’s adjusted EPS anticipated to rise by the second year post-closing.

The agreement, unanimously approved by both companies’ boards, offers Kenvue shareholders $3.50 per share in cash plus a fraction of Kimberly-Clark shares, valuing Kenvue stock significantly above its recent trading price. The transaction is planned to close in the second half of 2026, subject to shareholder and regulatory approval.

Kimberly-Clark’s CEO Mike Hsu emphasized the combination’s potential to accelerate innovation and better serve consumers worldwide, positioning the merged company as a leader in the consumer health space. The combined governance will include Kenvue board members joining Kimberly-Clark’s board, with headquarters remaining in Irving, Texas.

Key Highlights:

$48.7 billion cash-and-stock acquisition of Kenvue by Kimberly-Clark

Combined company projected to have $32 billion annual revenue and $7 billion adjusted EBITDA

Run-rate synergies of $2.1 billion expected from cost reductions and revenue growth

Kenvue shareholders to receive cash plus Kimberly-Clark shares, totaling $21.01 per share

Transaction closing expected in second half of 2026 pending approvals

Integration to leverage complementary portfolios and expand global health and wellness market presence

Leadership includes Mike Hsu as CEO; Kenvue executives to join Kimberly-Clark board

Sources: PR Newswire, Reuters, CNBC, Investing.com