Kimberly-Clark announced plans to acquire Kenvue in a cash and stock transaction valuing the consumer health company at an enterprise value of approximately $48.7 billion. The deal, unanimously approved by both boards, will create a combined global leader with roughly $32 billion in annual net revenues and $7 billion in adjusted EBITDA.
The transaction, based on the closing price of Kimberly-Clark stock on October 31, 2025, represents an acquisition multiple of about 14.3x Kenvue’s last twelve months adjusted EBITDA, or 8.8x when including expected run-rate savings of $2.1 billion.
Kenvue is known for its brands, including Tylenol, Band-Aid, Listerine, Neutrogena, Aveeno, Zyrtec, Imodium, and Nicorette. And Kimberly-Clark is known for Huggies, Pull-Ups, Kleenex, Scott, Cottonelle, Depend, Kimwipes, and Safeskin.
Under the agreement, Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share, translating to total consideration of $21.01 per share. Upon completion, expected in the second half of 2026, Kimberly-Clark shareholders are expected to own approximately 54% of the new entity, with Kenvue shareholders holding the remaining 46%. Kimberly-Clark plans to finance the cash portion through a mix of balance sheet cash, new debt issuance, and proceeds from the sale of a 51% stake in its International Family Care and Professional business.
The merger combines two iconic American companies with portfolios that include ten billion-dollar brands spanning personal care and consumer health. The companies stated the integration will create a best-in-class consumer-driven organization supported by enhanced investment in marketing, innovation, and research and development. The combined platform will focus on delivering trusted, science-backed products that reach nearly half the global population.
Projected synergies include approximately $1.9 billion in cost savings and $500 million in incremental profit from revenue synergies, offset by $300 million in reinvestment. These efficiencies are expected to be realized within the first four years after closing, with associated costs of $2.5 billion. Kimberly-Clark expects the deal to be accretive to adjusted EPS by the second year following completion.
Mike Hsu, current Chairman and CEO of Kimberly-Clark, will lead the combined company as Chairman and CEO. Three members of Kenvue’s board will join the Kimberly-Clark board. The new company will retain its headquarters in Irving, Texas, while maintaining a strong operational presence in Kenvue’s current locations.
Advisors/counsel: Kimberly-Clark’s advisors include PJT Partners and J.P. Morgan Securities as financial advisors, with legal counsel provided by Kirkland & Ellis. Kenvue is being advised by Centerview Partners and Goldman Sachs, with Cravath, Swaine & Moore serving as legal counsel.
KEY QUOTES:
“We are excited to bring together two iconic companies to create a global health and wellness leader. Kenvue is 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, 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.”
Mike Hsu, Chairman and Chief Executive Officer, Kimberly-Clark Corporation
“Following the Board’s comprehensive review of strategic alternatives for Kenvue, we are pleased to have reached this agreement with Kimberly-Clark that delivers significant upfront value for our shareholders and substantial upside potential through ownership in the combined company. 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.”
Larry Merlo, Chair of the Board, Kenvue
“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. Our teams share a passion for delivering science-backed solutions that play a meaningful role in homes and communities around the world. Together, our combined strengths, expanded capabilities and resources, and broader reach will empower us to innovate even faster and strengthen our category leadership. 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.”
Kirk Perry, Chief Executive Officer, Kenvue
