Kimberly-Clark has agreed to acquire Kenvue-the maker of Tylenol, Band-Aid, and Benadryl-in a $48.7 billion cash-and-stock transaction that will unite some of the world's best-known consumer health and personal care brands. The deal, announced Monday, marks one of the largest mergers in 2025 and positions the combined company as a global powerhouse in the consumer staples sector.
Shares of Kenvue jumped 15% in early trading following the announcement, while Kimberly-Clark stock fell 12% as investors weighed the scale of the purchase. The merger, approved by both companies' boards, is expected to close in the second half of 2026, pending regulatory and shareholder approval.
Under the terms, Kenvue shareholders will receive $3.50 in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held, amounting to approximately $21.01 per share based on Kimberly-Clark's Oct. 31 closing price. Once finalized, Kimberly-Clark shareholders will own about 54% of the combined company, and Kenvue investors will hold 46%.
The merged business will bring together household names including Kleenex, Huggies, Cottonelle, Band-Aid, and Tylenol-ten of which are billion-dollar brands. Kimberly-Clark and Kenvue said the new entity is projected to generate about $32 billion in annual revenue and roughly $7 billion in adjusted EBITDA by 2025, with $1.9 billion in cost synergies expected within three years of closing.
Kimberly-Clark Chairman and CEO Mike Hsu called the deal "a powerful next step in our journey," adding that the companies share a "commitment to developing science and technology to provide extraordinary care." Kenvue Chair Larry Merlo said the board concluded after a "comprehensive strategic review" that the combination "represents the best path forward for our shareholders and all other stakeholders."
The acquisition follows months of volatility for Kenvue, which spun off from Johnson & Johnson in 2023 and saw its stock tumble 35% from its IPO price. The company was thrust into controversy this fall after President Donald Trump and Health and Human Services Secretary Robert F. Kennedy Jr. suggested a potential link between Tylenol's active ingredient, acetaminophen, and autism.
Kenvue pushed back forcefully. "We believe independent, sound science clearly shows that taking acetaminophen does not cause autism," company spokesperson Melissa Witt said. "The facts are that over a decade of rigorous research, endorsed by leading medical professionals and global health regulators, confirms there is no credible evidence linking acetaminophen to autism."
The allegations nonetheless triggered a wave of political and legal scrutiny, including a lawsuit by Texas Attorney General Ken Paxton accusing Kenvue of failing to warn consumers about pregnancy-related risks. Kennedy later softened his position, stating that evidence was "not sufficient to say it definitely causes autism."
