Huggies by Kimberly-Clark and Band-Aid by Kenvue.
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kimberly clark announced on Monday that it had agreed to acquire the company. Kenview The deal, valued at $48.7 billion, would create a consumer staples giant.
This transaction is a combination of cash and stock. Kenview stock rose 20% in premarket trading Monday, while Kimberly-Clark stock fell 14%.
The combined company will combine brands like Huggies and Kleenex with brands like Band-Aid and Tylenol. That includes $10 billion brands, the companies said in a news release. The acquisition would be one of the biggest acquisitions on Wall Street this year.
The transaction is expected to close in the second half of 2026.
Kimberly-Clark Chairman and CEO Mike Hsu said in a statement that the two companies share “a commitment to developing science and technology to deliver exceptional care.”
“Over the past several years, Kimberly-Clark has undertaken a significant transformation to center our portfolio around high-growth, high-margin businesses and rewire our organization to work smarter and faster,” said Su. “We are building a foundation and this transaction is a strong next step in our journey.”
Kenvue is a portfolio of consumer health brands; johnson & johnson Since then, the stock has fallen about 35% from its initial public offering price. As of Friday’s close, Kenview had a market capitalization of about $27 billion and traded at about $14 per share.
Kenvue Chairman Larry Merlo said in a statement that after a comprehensive strategic review, the board is “confident that this combination represents the best path forward for our shareholders and all other stakeholders.”
Upon completion of the acquisition, three members of Kenview’s board of directors will join Kimberly-Clark’s board of directors. Mr. Hsu will continue to serve as CEO.
The combined company will have estimated annual net revenues of approximately $32 billion and adjusted EBITDA of approximately $7 billion in 2025, according to the release.
Kimberly-Clark and Kenview expect to realize approximately $1.9 billion in cost synergies from this transaction over the first three years following closing.
