Kimberly-Clark buys Kenvue in a $48.7 billion deal

Kimberly Clark It announced Monday that it had reached an agreement to purchase Kinview In a deal worth $48.7 billion that would create a consumer goods giant.

The deal is a combination of cash and stock. Kenvue shares rose 20% in premarket trading Monday, while Kimberly-Clark shares fell 14%.

The combined company will combine brands such as Huggies and Kleenex with the likes of Band-Aid and Tylenol. The companies said in a press release that it will include brands worth $10 billion. The acquisition will be one of the largest on Wall Street this year.

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

Mike Hsu, chairman and CEO of Kimberly-Clark, said in a statement that the two companies share a “commitment to advancing science and technology to provide exceptional care.”

“Over the past several years, Kimberly-Clark has made a significant shift to pivot our portfolio toward higher-growth, higher-margin companies while rewiring our organization to work smarter and faster,” Hsu said. “We have built the foundation and this transaction is a strong next step in our journey.”

Kenvue, a collection of consumer health brands, has emerged Johnson & Johnson in May 2023. Since then, shares have fallen roughly 35% from their initial public offering price. As of Friday’s close, Kenvue was trading at about $14 per share for a market cap of about $27 billion.

After a comprehensive strategic review, the board is “confident that this combination represents the best path forward for our shareholders and all other stakeholders,” Kenvue President Larry Merlo said in a statement.

Three Kenvue board members will join Kimberly-Clark’s board of directors upon completion of the transaction. Hsu will continue to serve as CEO.

According to the statement, the combined company will have estimated 2025 annual net revenues of approximately $32 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $7 billion.

Kimberly-Clark and Kenvue expect to realize approximately $1.9 billion in cost synergies from the transaction in the first three years after the transaction closes.