Kimberly-Clark, the maker of household brands such as Huggies and Kleenex, will acquire Kenvue, the consumer health company behind Tylenol, in a cash-and-stock transaction valued at $48.7 billion.
The deal comes as Kenvue faces federal scrutiny and litigation over the safety of Tylenol, or acetaminophen, during pregnancy. The FDA is preparing to update warning labels amid studies suggesting a potential link between prenatal acetaminophen use and developmental disorders, though major medical groups maintain the drug is safe. Texas Attorney General Ken Paxton has also sued Kenvue, alleging deceptive marketing. Kenvue has defended the product’s safety and said it will “vigorously defend” against the claims.
Kenvue shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly-Clark stock, per share. Kimberly-Clark will invest $2.5 billion to achieve those targets and provide $6.8 billion in upfront cash. The combined company is projected to generate $32 billion in revenue and $7 billion in adjusted EBITDA in 2025, with a 54/46 ownership split between Kimberly-Clark and Kenvue shareholders. The deal is expected to close in the second half of 2026.
