Kimberly-Clark completes purchase of Kenvue to create $32B giant
Kimberly-Clark, which makes Huggies and Kleenex, agreed to buy Kenvue, which makes Tylenol and Band-Aid.
The short version
- Shareholders will receive cash and stock valued at $21.01 per share.
- If you hold shares in either company, check your brokerage account for the cash and stock exchange terms.
Why it matters to you. For your business and portfolio, this mega-merger combines household essentials from baby wipes to pain relievers under one roof.
Kimberly-Clark Corp., a personal care titan whose brands include Huggies, Kleenex, Scott, Kotex and Cottonelle, agreed on Nov. 3 to complete its purchase of Kenvue Inc., a global consumer health company whose brands include Aveeno, Band-Aid, Listerine and Tylenol, according to ROI-NJ.
Under the agreement, Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction valued at about $48.7 billion. Kenvue shareholders will receive $3.50 per share in cash as well as 0.14625 Kimberly-Clark shares for each share held at closing, for a total of $21.01 per share based on a late October closing price.
Upon closing, current Kimberly-Clark shareholders will own about 54% and Kenvue shareholders will own about 46% of the combined company. The transaction brings together two famous American companies to create a combined portfolio with 10 billion-dollar brands reaching nearly half the global population.
The combined company expects to generate annual net revenues of approximately $32 billion and about $7 billion of adjusted EBITDA. Mike Hsu, the chairman and chief executive officer of Kimberly-Clark, will lead the combined company as chairman and CEO, maintaining headquarters in Irving, Texas.
Three members of the Kenvue board will join the Kimberly-Clark board at closing. The massive new health and wellness giant faces competition from Procter & Gamble Company PG, which operates major beauty, healthcare and grooming businesses. Kirk Perry is the chief executive officer of Kenvue.
PJT Partners LP and J.P. Morgan Securities LLC served as financial advisers to Kimberly-Clark, while Centerview Partners LLC and Goldman Sachs & Co. LLC advised Kenvue.
