Kimberly-Clark to acquire Kenvue in $48.7B cash-and-stock deal

Kimberly-Clark announced on Monday that it will acquire Kenvue, the maker of Tylenol, in a cash-and-stock transaction valued at about $48.7 billion, a deal the companies said will combine two large consumer health and household-goods portfolios and is expected to close in the second half of next year pending shareholder approvals. Under the agreement, Kenvue shareholders will receive $3.50 in cash plus 0.14625 Kimberly-Clark shares for each Kenvue share at closing, a package the companies said equates to $21.01 per Kenvue share based on Kimberly-Clark’s recent closing price. Kimberly-Clark shareholders are expected to own roughly 54 percent of the combined company, with Kenvue shareholders holding about 46 percent.

The companies said the combined business is projected to generate approximately $32 billion in annual net revenues in 2025 and that they have identified about $1.9 billion in cost savings to be realized in the first three years after closing. Kimberly-Clark’s chairman and chief executive officer, Mike Hsu, will lead the merged company as chairman and CEO. Three members of Kenvue’s board will join Kimberly-Clark’s board, and the company said its headquarters will...