Finbold·2025-11-03 19:36Core Viewpoint - Kenvue's shares surged by 14% following the announcement of Kimberly-Clark's plan to acquire the company for $48.7 billion, despite ongoing controversies and legal challenges faced by Kenvue [1][3][5]. Group 1: Acquisition Details - Kimberly-Clark plans to acquire Kenvue in a deal valued at $48.7 billion, combining its personal care and paper products with Kenvue's over-the-counter health brands [5]. - The acquisition is expected to close in the second half of 2026 and is structured as a mix of cash and stock, valuing Kenvue at $19.25 per share, a significant premium to its recent trading price [6]. - The merger would create one of the largest consumer health and household product companies globally, with both companies controlling ten brands each generating over $1 billion in annual sales [5]. Group 2: Market Reaction - Following the acquisition announcement, Kenvue's stock rose to $16.40, although it remains down 22% year-to-date [3]. - In contrast, Kimberly-Clark's shares fell approximately 13% as investors reacted to the acquisition costs and potential legal risks associated with Kenvue's portfolio [6]. Group 3: Company Performance and Challenges - Kenvue, which was spun out of Johnson & Johnson in 2023, has faced significant challenges, with its shares down about 35% from the IPO price due to lawsuits and controversies [7]. - Despite negative headlines, Kenvue reported better-than-expected earnings, with $3.8 billion in sales and an adjusted profit of $0.28 per share [8].