Kimberly-Clark to buy Kenvue in US$48.7 billion deal

Kimberly-Clark Corporation, the parent company behind Kleenex and Huggies, has unveiled plans to acquire consumer health firm Kenvue in a cash-and-stock deal valued at about US$48.7 billion. The deal, approved by both companies’ boards, is expected to close in the second half of 2026, subject to shareholder and regulatory approvals.

The deal brings together a portfolio of household names across both companies, creating what they describe as a “global health and wellness leader” spanning 10 billion-dollar brands and reaching nearly half the world’s population.

Kimberly-Clark chairman and CEO Mike Hsu, who will lead the combined company, said the merger will “harness both companies’ strengths in science, innovation, and brand building to meet evolving consumer needs.” The headquarters will remain in Irving, Texas, with continued presence at Kenvue’s key locations.

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Upon completion, Kimberly-Clark shareholders will own about 54% of the combined company, while Kenvue shareholders will hold around 46%.

The transaction will create a combined entity with estimated annual revenue of US$32 billion and adjusted EBITDA of about US$7 billion in 2025. Kimberly-Clark expects the acquisition to deliver cost synergies of approximately US$1.9 billion and an additional US$500 million in profit from revenue synergies within the first four years post-close, offset by around US$300 million in reinvestment.

“We are excited to bring together two iconic companies to create a global health and wellness leader,” said Hsu. “Kenvue is uniquely positioned at the intersection of CPG and healthcare, with exceptional talent and a differentiated brand offering. With our shared commitment to science and technology, we will serve billions of consumers across every stage of life.”

Hsu added that the deal marks a major step in Kimberly-Clark’s ongoing business transformation. “Over the last several years, we’ve pivoted our portfolio to higher-growth, higher-margin businesses and rewired our organisation to work smarter and faster. This transaction is a powerful next step, and we’re confident it will drive significant value for shareholders.”

Larry Merlo, chair of Kenvue’s board, said the agreement “delivers significant upfront value for shareholders and substantial upside potential through ownership in the combined company”. He added that the merger “creates a uniquely positioned global leader in consumer health with a broader range of growth opportunities ahead.”

Kenvue CEO Kirk Perry echoed the sentiment, noting that the merger unites “two highly complementary portfolios filled with iconic, trusted brands”. He said, “Together, our combined strengths, expanded capabilities and broader reach will empower us to innovate faster, strengthen category leadership, and deliver greater value to shareholders, employees and consumers.”

The move to acquire Kenvue builds on Kimberly-Clark’s continued push to expand its global footprint in emerging markets. In 2020, the company acquired Softex Indonesia, a manufacturer and distributor of baby, adult, and feminine care products, for about US$1.2 billion from a group of shareholders including CVC Capital Partners Asia Pacific IV.

At the time, Hsu said the acquisition “represents a compelling strategic fit and demonstrates our commitment to accelerate growth in developing and emerging markets.” The deal strengthened Kimberly-Clark’s presence in Indonesia, Southeast Asia’s largest economy, giving it strong market share in key personal care categories and enhancing its growth prospects in the region.

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