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Kimberly-Clark has struck a $49bn deal to acquire the consumer health group Kenvue in a landmark takeover that will combine brands such as Kleenex and Band-Aid under the same ownership.
Kimberly-Clark, which also owns the likes of Huggies and Andrex, said on Monday it had reached a cash-and-stock deal to acquire Kenvue for a total consideration of $21.01 per Kenvue share.
Kenvue shares closed on Friday at $14.37. The stock has fallen by about a third this year as the company has faced pressure from US health secretary Robert F Kennedy Jr, who has entertained unfounded links between the use of over-the-counter painkiller Tylenol during pregnancy and autism.
Since being spun out of Johnson & Johnson in 2023, Kenvue struggled as a standalone group and was targeted by a succession of activist hedge funds. This year, Starboard co-founder Jeff Smith was added to the board, while Dan Loeb’s Third Point and Toms Capital Investment Management have also built positions.
In July, Kenvue removed its chief executive who had led it since the spin-off and initiated a strategic review.
“We are excited to bring together two iconic companies to create a global health and wellness leader,” said Mike Hsu, Kimberly-Clark chief executive, in a statement.
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