Kenvue (KVUE) shares skyrocketed in early trading Monday after Kleenex and Cottonelle maker Kimberly-Clark (KMB) said it’s buying the Tylenol maker in a $48.7 billion deal.

Kenvue shares were up over 17% in recent trading following the news, while Kimberly-Clark shares tumbled close to 13%.

Kimberly-Clark said that as part of the agreement, Kenvue investors would receive $3.50 in cash and 0.14625 shares of Kimberly-Clark for each Kenvue share they owned. At Kimberly-Clark’s closing price of $119.71 on Friday, that works out to $21.01 per share, a 46.2% premium to Kenvue’s closing price Friday. The transaction is expected to close in the second half of next year.

Kimberly-Clark CEO Mike Hsu said that over the past few years the company has undertaken a “significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster.” He called the acquisition of Kenvue “a powerful next step in our journey.”

Kenvue Chair Larry Merlo said the decision to merge with Kimberly-Clark came following a “comprehensive review of strategic alternatives for Kenvue.”

Why This Is Significant

The move by Kimberly-Clark and Kenvue comes as some large companies in the consumer packaged goods space turn to deals as a way to add brands to their portfolios and drive growth while facing changes in consumer behavior and rising costs, in part due to shifting trade policies.

Kenvue, which was spun off of Johnson & Johnson (JNJ) in 2023, has struggled since then, with shares hitting an all-time low last month. Among its challenges, the company faces ongoing claims alleging its talcum powder causes cancer, and has been targeted by the Trump administration, which has sought to draw a connection between its Tylenol and autism.

Kimberly-Clark, which saw its own shares hit a year-and-a-half low last month, also faces challenges as it’s grappled with tariffs and global economic conditions that have raised costs, and a pullback by consumers.

Shares of Kenvue and Kimberly-Clark have both lost about a fifth of their value in 2025 so far.

Related Education

Mergers and Acquisitions (M&A): Types, Structures, and Valuations

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