Kimberly-Clark, manufacturer of consumer goods and personal care products, is best known for its paper-based products, including Scott, Cottonelle, Kleenex, Kotex, Huggies, and Pull-ups.
The company is now expanding its portfolio with more everyday American products through a strategic acquisition.
On November 3, Kimberly-Clark announced the acquisition of Kenvue, the maker of Tylenol, Neutrogena, Aveeno, and other brands, in a deal valued at approximately $48.7 billion.
“Over the last several years, Kimberly-Clark has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster,” explained Kimberly-Clark CEO Mike Hsu.
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Kimberly-Clark’s acquisition boosts Kenvue stock
The combined company, Kimberly-Clark and Kenvue, is expected to generate approximately $32 billion in annual net revenue in 2025 and $7 billion in adjusted EBITDA.
The deal is among the most significant corporate takeovers of the year and is already benefiting the stock price of controversial Tylenol maker Kenvue.
The company’s stock, which was up 17% in pre-market trading, is now trading 15.8% higher, coinciding with its Q3 2025 earnings report, which reported a 3.5% decline in net sales.
Meanwhile, the stock of Kimberly-Clark is trading 12.9% lower, a new 52-week low for the global consumer goods giant.
Related: Tylenol trust crisis: Trump, RFK Jr. and Texas lawsuits slam Kenvue
According to the official announcement, the acquisition aims to leverage the combined company’s scale, brand equity, and distribution strength across more than 175 countries.
At the closing of the deal, expected in the second half of 2026, subject to regulatory approval, Kenvue shareholders are expected to own 46% and Kimberly-Clark 54% of the combined shares.
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The announcement follows a series of leadership changes at Kenvue, including the appointment of Kirk Perry as permanent CEO and Jonathan Halvorson as chief digital and marketing officer, effective November 17.
Halvorson is recognized for leading AI-driven marketing and digital commerce initiatives, skills that are likely to play a pivotal role in aligning the now-merged company’s global digital strategy.
Perry believes that the acquisition will bring greater value to the shareholders while increasing potential growth opportunities.
The Tylenol autism controversy
The news comes as Kenvue maker Tylenol has been embroiled in litigation surrounding the alleged relationship between Tylenol and autism in children.
In October, the Texas Attorney General’s Office filed a lawsuit against Kenvue and Johnson & Johnson, alleging deceptive marketing of Tylenol to pregnant women.
This came weeks after U.S. Health and Human Services Secretary Robert F. Kennedy Jr. asserted a link between the pain reliever and autism, which the companies have strongly disputed and described as scientifically unproven.
But last week, RFK Jr. also softened his stance, acknowledging there is insufficient data to support the connection, but continuing to caution against Tylenol’s use during pregnancy.
