Tylenol Maker Is Being Sold

Kimberly-Clark, known for household staples like Huggies diapers and Kleenex, has struck a deal to acquire Kenvue, the company behind Tylenol and Listerine, in a transaction valued at over $40 billion. The cash-and-stock agreement prices Kenvue shares at $21.01 each, a significant premium over their Friday close of $14.37, per the Wall Street Journal. The total value of the transaction, including debt, comes to $48.7 billion. The merger will create a health and wellness giant with roughly $32 billion in annual revenue and a portfolio of 10 brands that each generate at least $1 billion in sales. It will be "one of the biggest consumer health goods companies in the United States," notes Reuters.

Kimberly-Clark, which also includes brands Kotex and Cottonelle, expects the acquisition to strengthen its position in key categories benefiting from a consumer shift toward health and wellness products. The new company will include Kenvue staples like Band-Aid, Aveeno, and Neutrogena. Under the deal's terms, Kenvue shareholders will receive $3.50 per share in cash plus a fraction of Kimberly-Clark stock for every Kenvue share they own. Once the deal closes, which is expected in the latter half of 2026, Kimberly-Clark's current shareholders will control about 54% of the combined company, while Kenvue shareholders will hold 46%, per the Journal. However, Bloomberg notes the deal could be complicated by the Trump administration's attacks on Tylenol—Kenvue's biggest product.