Kimberly-Clark to acquire Kenvue, creating a $32 billion global health and wellness leader
Kimberly-Clark Corporation, a global leader in personal care, and Kenvue Inc. (NYSE: KVUE), a prominent player in consumer health, announced an agreement under which Kimberly-Clark will acquire all outstanding shares of Kenvue common stock. The transaction, consisting of cash and stock, values Kenvue at an enterprise value of approximately $48.7 billion, based on Kimberly-Clark’s closing share price as of October 31, 2025.
The total consideration reflects an acquisition multiple of roughly 14.3x Kenvue’s last twelve months adjusted EBITDA, or 8.8x including expected run-rate synergies of $2.1 billion, net of reinvestment.
This landmark transaction brings together two iconic American companies to form a combined portfolio of complementary products – including ten billion-dollar brands – reaching nearly half of the global population across every stage of life. The new entity will leverage a strong commercial engine fueled by strategic partnerships, category-defining innovation, advanced digital capabilities, and operational excellence to unlock its full growth potential.
Leaders’ comments on the combination
“We are excited to bring together two iconic companies to create a global health and wellness leader,” said Mike Hsu, Chairman and CEO of Kimberly-Clark. “Kenvue is uniquely positioned at the intersection of consumer packaged goods and healthcare, with outstanding talent and a differentiated portfolio serving high-value consumer health categories. With our shared focus on science and technology to deliver extraordinary care, we will serve billions of consumers across every stage of life.”
Hsu added, “Over the last several years, Kimberly-Clark has transformed its portfolio toward higher-growth, higher-margin businesses while reshaping our organization for greater agility. This transaction marks a powerful next step in that journey. We look forward to partnering with Kenvue’s team to integrate our operations and deliver meaningful value for our combined shareholders.”
Larry Merlo, Chair of the Kenvue Board, commented: “Following a comprehensive review of strategic alternatives, we are pleased to have reached this agreement with Kimberly-Clark. The deal delivers significant upfront value to our shareholders and long-term potential through participation in the combined company. Together, Kimberly-Clark and Kenvue will create a global leader in consumer health with exciting new growth opportunities.”
Kirk Perry, CEO of Kenvue, added: “Uniting these two complementary portfolios brings together iconic, trusted brands that people rely on every day. Both organizations share a passion for delivering science-backed solutions that improve lives. The combined scale, innovation capacity, and expanded reach will accelerate growth, create opportunities for our teams, and deliver more benefits to our customers and consumers.”
Strategic rationale and benefits
Serving consumers across life stages.
The transaction expands the combined company’s presence in categories positioned for long-term growth as global consumers increasingly prioritize health, hygiene, and well-being.
Complementary portfolios and geographic reach.
By combining their global footprints and product strengths, Kimberly-Clark and Kenvue will establish a world-class health and wellness platform capable of addressing unmet consumer needs and accelerating innovation.
Commercial and go-to-market acceleration.
Kimberly-Clark’s proven commercial playbook—rooted in consumer insight, brand premiumization, and advanced digital marketing—will further strengthen Kenvue’s product activation and market penetration.
Science-backed innovation.
Kenvue’s strong R&D capabilities and established relationships with healthcare professionals, including dermatologists, dentists, and pediatricians, will enhance the combined company’s credibility and innovation potential.
Enhanced R&D investment.
The merged company will feature one of the industry’s most advanced research teams, supported by increased investment and scale to deliver innovative, science-driven solutions to improve everyday life for billions of people.
Financial highlights.
The combined company is projected to generate annual net revenues of approximately $32 billion and adjusted EBITDA of around $7 billion in 2025. The transaction is designed to strengthen Kimberly-Clark’s financial profile while maintaining its current investment-grade credit rating and preserving flexibility for future strategic investments.
Synergies and integration.
The companies expect approximately $1.9 billion in cost synergies and $500 million in incremental profit from revenue synergies, partially offset by $300 million in reinvestments. Kimberly-Clark anticipates investing $2.5 billion of cash costs to achieve these synergies, primarily within the first two years post-closing.
Value creation.
The agreement provides Kenvue shareholders with $6.8 billion in upfront cash consideration, alongside the opportunity to participate in the growth of the combined company. The transaction is expected to deliver both immediate and long-term value to shareholders.
Transaction details
Under the terms of the agreement, unanimously approved by both Boards of Directors, Kenvue shareholders will receive $3.50 in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held, representing a total consideration of $21.01 per share, based on the closing price of Kimberly-Clark stock on October 31, 2025. Following completion, Kimberly-Clark shareholders will own approximately 54% and Kenvue shareholders about 46% of the combined company on a fully diluted basis.
To finance the transaction, Kimberly-Clark has secured committed financing from JPMorgan Chase Bank, N.A., and plans to fund the cash portion through a mix of existing cash, new debt issuance, and proceeds from the previously announced sale of a 51% interest in its International Family Care and Professional (IFP) business.
The transaction is expected to close in the second half of 2026, subject to shareholder and regulatory approvals and customary closing conditions.
Leadership and headquarters
Mike Hsu will serve as Chairman and CEO of the combined company. Upon closing, three members of Kenvue’s current Board will join the Kimberly-Clark Board. The headquarters will remain in Irving, Texas, while maintaining a significant presence at Kenvue’s existing locations.
