Kimberly-Clark announced that it will purchase Tylenol parent company Kenvue and its brands in a deal worth nearly $50 billion.
The $48.7 billion deal “brings together two iconic American companies to create a combined portfolio of complementary products, including 10 billion-dollar brands, that touch nearly half the global population through every stage of life,” a press release on the matter explains, going on to call the transaction a “superior commercial engine.”
“Over the last several years, Kimberly-Clark has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster,” Mike Hsu, Kimberly-Clark Chairman and CEO said in a statement. “We have built the foundation and this transaction is a powerful next step in our journey.”
Kenvue CEO Kirk Perry said the companies’ “combined strengths, expanded capabilities and resources, and broader reach will empower us to innovate even faster and strengthen our category leadership.”
The combined company is expected to generate annual net revenues of approximately $32 billion and approximately $7 billion of adjusted earnings before interest, taxes, depreciation, and amortization.
Kimberly-Clark brands includes Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, and others, while Kenvue brands include Aveeno, Band-AId, Listerine, Neutrogena, Tylenol, and others.
Tylenol has been embroiled in legal battles following the Trump administration’s announcement that acetaminophen is linked to health issues when taken during pregnancy.
Texas Attorney General Ken Paxton recently filed a lawsuit against Johnson & Johnson and Kenvue, manufacturers of Tylenol, for concealing the link between prenatal use of acetaminophen and the risk of autism.
