Kimberly-Clark said it agreed to acquire Kenvue for about $40 billion in a cash-and-stock deal. Under the terms announced Monday, Kimberly-Clark shareholders would own roughly 54 percent of the combined company, which the companies said would generate about $32 billion in annual revenue and $7 billion in operating profit.
The combined company would be based at Kimberly-Clarkâs headquarters in Irving, Texas, with continued presence in Kenvueâs locations; Kenvue moved this year to a headquarters campus in Summit, N.J. Mike Hsu, Kimberly-Clarkâs chief executive, would become chairman and chief executive of the new company.
Talks began after Kenvue announced a strategic review in July following the chief executiveâs departure, and negotiations were underway when the Trump administration began in September publicly linking Tylenolâs active ingredient, acetaminophen, to autism. The companies said they expect nearly $2 billion in âsynergiesâ over three years. The deal is subject to shareholder and regulatory approvals and includes a breakup fee of roughly $1 billion if a party is responsible for failure to close.