Irving-based Kimberly-Clark has agreed to acquire New Jersey-based Kenvue Inc.—a Johnson & Johnson consumer products spinoff and beleaguered maker of Tylenol—for around $40 billion.

Kimberly-Clark (Nasdaq: KMB), maker of Kleenex, Huggies, and other top-selling brands, said the deal will create a combined portfolio of complementary products, including $10 billion-dollar brands.

Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction that values Kenvue at an enterprise value of approximately $48.7 billion, based on the closing price of Kimberly-Clark common stock on October 31, 2025, the companies said. 

Kenvue (NYSE: KVUE) has been in the headlines recently after the Trump administration controversially linked acetaminophen, the active ingredient in Tylenol, with an increased risk of autism when used by pregnant women.

Appearing to look past that, Kimberly-Clark said the combined company “will harness a superior commercial engine—fueled by strategic customer partnerships, category-defining growth, industry-leading science and innovation, a differentiated digital model, best-in-class marketing, and a culture of operating excellence—to unlock the full potential of the combination and better meet the evolving needs of consumers.”

Aiming to serve billions ‘across every stage of life’

Mike Hsu, Kimberly-Clark’s chairman and CEO, called Kenvue “uniquely positioned at the intersection of CPG and healthcare, with exceptional talent and a differentiated brand offering serving attractive consumer health categories. With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life.”

“Over the last several years,” Hsu added in a statement, “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. We have built the foundation and this transaction is a powerful next step in our journey. We look forward to working with the Kenvue team to bring these companies together, and are confident that we will drive significant value for our combined shareholders.”

Bringing together Kenvue and Kimberly-Clark creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead. We are excited about this next chapter for Kenvue and confident this combination represents the best path forward for our shareholders and all other stakeholders.”

Kenvue leaders laud deal

Kenvue CEO Kirk Perry said that bringing together Kenvue and Kimberly-Clark “creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead.”

“Our combination with Kimberly-Clark unites two highly complementary portfolios filled with iconic, beloved brands and everyday essentials that people trust and count on throughout their lives,” Perry added in a statement. “We truly believe this transaction with Kimberly-Clark will bring greater value to our shareholders, create new and different potential growth opportunities for our talented employees, and deliver even more benefits to our customers and consumers.”

Kenvue Board Chair Larry Merlo said the combination “creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead.”

Details of the acquisition

Under the terms of the agreement, Kenvue shareholders will receive $3.50 per share in cash as well as 0.14625 Kimberly-Clark shares for each Kenvue share held at closing, for a total consideration to Kenvue shareholders of $21.01 per share, based on the closing price of Kimberly-Clark shares as of October 31, 2025.

Upon the deal’s close, current Kimberly-Clark shareholders are expected to own approximately 54% and current Kenvue shareholders are expected to own approximately 46% of the combined company on a fully diluted basis.

Hsu will be the chairman and CEO of the combined company. At closing, three members of the Kenvue board will join the Kimberly-Clark board. The combined company will maintain Kimberly-Clark’s headquarters in Irving and continue to have a significant presence in Kenvue’s locations, the companies said.

The two companies say they’ve identified around $1.9 billion in cost synergies and around $500 million in incremental profit from revenue synergies, partially offset by reinvestment of approximately $300 million. 

The transaction is slated to close in the second half of 2026.

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