Kimberly-Clark to buy Kenvue, maker of Tylenol, in $48 billion deal

Core Viewpoint - Kimberly-Clark is acquiring Kenvue, the maker of Tylenol, in a deal valued at over $48 billion, expected to close in the second half of 2026, pending regulatory and shareholder approvals [1][2]. Group 1: Deal Overview - The merger will create a combined company with significant consumer goods brands, including Kenvue's Tylenol, Band-Aid, and Benadryl, alongside Kimberly-Clark's Kleenex, Cottonelle, and Huggies [1]. - The new entity is projected to generate an annual revenue of $32 billion [3]. - Current Kimberly-Clark shareholders will own approximately 54% of the combined company, while Kenvue shareholders will hold about 46% [3]. Group 2: Financial Terms - Under the terms of the transaction, Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing, totaling $21.01 per share based on Kimberly-Clark's closing price on October 31 [4]. Group 3: Market Reaction - Following the announcement, Kimberly-Clark's stock fell by over 12%, while Kenvue's stock rose by more than 15% in morning trading on November 3 [5]. - Despite the gains on November 3, Kenvue's stock is down approximately 22% year-to-date, and Kimberly-Clark's stock has decreased by about 20% in 2025 [5]. Group 4: Contextual Background - The acquisition follows a tumultuous period for Kenvue, which included the ousting of its CEO in July and controversy surrounding Tylenol's alleged link to autism, as promoted by former President Trump [2][6]. - Medical professionals have largely disputed the claims linking Tylenol to autism, asserting that there is no definitive evidence supporting such a connection [6].