Kimberly-Clark agrees to buy Kenvue in $48.7 billion deal, creating consumer staples giant

Core Viewpoint - Kimberly-Clark has announced an agreement to acquire Kenvue for $48.7 billion, creating a significant player in the consumer staples sector [1][2]. Group 1: Deal Overview - The acquisition is structured as a combination of cash and stock, with Kenvue's shares rising 20% in premarket trading, while Kimberly-Clark's shares fell 14% [1]. - The deal will unite brands such as Huggies and Kleenex with Band-Aid and Tylenol, resulting in a portfolio of 10 billion-dollar brands [2]. - The transaction is anticipated to close in the second half of 2026 [2]. Group 2: Strategic Intent - Kimberly-Clark's CEO, Mike Hsu, emphasized the company's commitment to leveraging science and technology for enhanced consumer care and highlighted the strategic transformation towards higher-growth, higher-margin businesses [2][3]. - Kenvue's Chair, Larry Merlo, expressed confidence that the merger represents the best path forward for shareholders and stakeholders following a strategic review [3]. Group 3: Financial Projections - The combined entity is projected to generate approximately $32 billion in annual net revenues and around $7 billion in adjusted EBITDA by 2025 [3]. - Kimberly-Clark and Kenvue expect to achieve about $1.9 billion in cost synergies within the first three years post-acquisition [4].