Mergers and Acquisitions

Kimberly-Clark to Buy Kenvue for Over $40 Billion

To date, this is set to be the largest buyout in the U.S. consumer goods sector.

November 3, 2025

Assistant Editor

Kimberly-Clark has announced it will acquire Kenvue for over $40 billion, creating one of the largest consumer health companies in the United States.

The merger will bring together brands including Neutrogena, Huggies, and Kleenex under a consumer health and personal care company with expected combined annual revenues of roughly $32 billion.

According to Reuters, Kenvue has experienced months of struggles, including the ouster of its CEO and being targeted by President Donald Trump, who has asserted that Tylenol causes autism, a claim not backed by science.

Last week, U.S. Health and Human Services Secretary Robert F. Kennedy Jr. said there was not enough evidence to support this claim.

Kenvue is also facing lawsuits over claims that its baby powder products caused cancer.

Despite this, Kimberly-Clark expects about $2.1 billion in annual cost savings from the acquisition, which it expects to close in the second half of 2026.

Upon closing, Kimberly-Clark’s CEO Mike Hsu will take over as the top boss and chairman of the combined company.

Kenvue’s shareholders will receive $3.50 per share and 0.15 Kimberly-Clark shares for each Kenvue share held. That implies an equity value of $40.32 billion, according to Reuters calculations.

Either party may be required to pay a $1.12 billion termination fee in cash if the deal falls through, according to a regulatory filing.

Kimberly-Clark said it had received committed financing from JPMorgan Chase Bank, and that it expects to fund Kenvue’s purchase through a mix of cash and debt.