Huggies, made by Kimberly-Clark and Band-Aid, made by Kenvue.
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Kimberly Clark announced on Monday that it had reached an agreement to buy Kenvue in a deal valued at $48.7 billion that would create a consumer staples giant.
The transaction is a combination of cash and shares. Shares of Kenvue jumped 20% Monday in premarket trading, while shares of Kimberly-Clark plunged 14%.
The combined company would combine brands like Huggies and Kleenex with brands like Band-Aid and Tylenol. This would include $10 billion in brands, the companies said in a press release. This acquisition would be one of the largest on Wall Street this year.
The transaction is expected to be finalized in the second half of 2026.
Kimberly-Clark Chairman and CEO Mike Hsu said in a statement that the companies share a “commitment to developing science and technology to deliver extraordinary care.”
“Over the past several years, Kimberly-Clark has undertaken a significant transformation to shift our portfolio toward higher-growth, higher-margin businesses, while rewiring our organization to work smarter and faster,” Mr. Hsu said. “We have laid the foundation and this transaction is an important next step in our journey.”
Kenvue, a portfolio of consumer healthcare brands, from Johnson & Johnson in May 2023. Since then, shares have fallen nearly 35% from their IPO price. As of Friday’s close, Kenvue was trading at about $14 per share for a market cap of about $27 billion.
Kenvue Chairman Larry Merlo said in a statement that following a comprehensive strategic review, the board is “confident that this combination represents the best path forward for our shareholders and all other stakeholders.”
Three members of Kenvue’s board of directors will join Kimberly-Clark’s board of directors once the transaction closes. Hsu will continue to serve as CEO.
The combined company would generate estimated annual net revenue of approximately $32 billion for 2025 and adjusted EBITDA of approximately $7 billion, according to the release.
Kimberly-Clark and Kenvue expect the transaction to generate cost synergies of approximately $1.9 billion over the first three years following closing.