Tylenol brand’s parent Kenvue to merge with Kleenex company

Kimberly-Clark is acquiring Kenvue, the maker of Tylenol, in an all-cash and stock deal valued at approximately US$48

sarah

Nov 3, 2025 - 21:05

Tylenol brand’s parent Kenvue to merge with Kleenex company

Kimberly-Clark shareholders, whose brands include Huggies, Kleenex, and Cottonelle, will own approximately 54 percent of the combined company. Kenvue shareholders will own approximately 46 percent.

Kenvue has had a relatively short run as an independent company, having been spun off from Johnson & Johnson two years ago. J&J first announced in late 2021 that it was separating its consumer health division from its pharmaceutical and medical device divisions to make each more agile.

Kenvue was in the spotlight last month when Health Secretary Robert F. Kennedy Jr. reiterated an unproven link between the pain reliever Tylenol and autism, suggesting that those who opposed the theory were doing so out of hatred for President Donald Trump.

During a meeting with Trump and his cabinet, Kennedy reiterated the connection, even while acknowledging there was no medical evidence to support the claim.

In July, Kenvue, which also makes brands such as Listerine and Band-Aid, announced that CEO Thibaut Mongon was leaving the company as it continued its strategic review. Board member Kirk Perry is serving as interim CEO.

The combined company is expected to generate approximately US$32 billion in annual net revenue in 2025. Kimberly-Clark and Kenvue said they have identified approximately US$1.9 billion in cost savings, which are expected to be realized within the first three years after the transaction closes. Kimberly-Clark Chairman and CEO Mike Hsu said in a statement, "With a shared commitment to advancing science and technology to deliver exceptional care, we will serve billions of consumers at every stage of life."

Hsu will serve as Chairman and CEO of the combined company. Three members of the Kenvue board will join the Kimberly-Clark board upon closing of the deal. The combined company will maintain Kimberly-Clark's headquarters in Irving, Texas, and will also maintain a significant presence at Kenvue's locations.

The deal is expected to close in the second half of next year. It is still subject to approval by shareholders of both companies. Kenvue shareholders will receive US$3.50 in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing. Based on Kimberly-Clark's closing share price on Friday, this amounts to US$21.01 per share.

Before the market opened, Kimberly-Clark shares fell more than 15 percent, while Kenvue shares rose more than 20 percent.