The corporate emblem for Kenvue Inc. Johnson & Johnson’s consumer-health enterprise is displayed through the firm’s preliminary public providing on the New York Inventory Trade on Might 4, 2023.
Brendan Mcdermid | Reuters
Kimberly-Clark stated on Monday it would purchase Tylenol-maker Kenvue in a cash-and-stock deal valued at about $48.7 billion, to create one of many largest shopper well being items corporations in the US.
Shares of Kenvue had been up 18% in premarket buying and selling, whereas Kimberly-Clark’s shares had been down 12.5%.
Kenvue has been below a strategic evaluation, management shake-up, and mounting litigation dangers. It got here below recent scrutiny following President Donald Trump’s feedback linking its fashionable ache medication Tylenol to autism.
The deal will carry collectively manufacturers together with Neutrogena, Huggies and Kleenex below a shopper well being and private care firm with anticipated mixed annual revenues of roughly $32 billion.
Sources in June instructed Reuters the strategic evaluation of its operations may embody a sale or breakup of the corporate that had been spun off from healthcare conglomerate Johnson & Johnson in 2023.
Kenvue’s shareholders will obtain $3.50 per share and 0.15 Kimberly-Clark shares for every Kenvue share held. That suggests a per-share deal worth of $21.01, or an fairness worth of $40.32 billion, in response to Reuters calculations.