Kimberly-Clark Corporation, too, just announced its planned acquisition of Kenvue Inc., in a deal worth roughly $48.7 billion. It’s a big, smart strategic move for Kimberly-Clark that greatly increases Hain’s footprint. This latest endeavor will help the company build its product portfolio and market position. The transaction is expected to close in the second half of 2024, subject to customary regulatory approvals.
Kenvue’s spinoff from Johnson & Johnson two years ago creates new opportunities and flexibility for the company. Today, it manufactures better known consumer brands such as Listerine and Band-Aid. The company is in the midst of its own strategic review. This is in response to CEO Thibaut Mongon’s announcement in July that he would be leaving. After spending less than three months as an independent company, Kenvue is going public. This acquisition represents a long overdue, historic watershed moment for both companies.
Kenvue shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly-Clark common stock for each share of Kenvue they own. That adds up to approximately $21.01 per Kenvue share based on Kimberly-Clark’s most recent closing price. After the acquisition, Kenvue shareholders will have a pro forma ownership of approximately 46% of the combined company.
With the merger, Kimberly-Clark set the goal of achieving annual net revenues of approximately $32 billion by 2025. This bold target will make the company a trailblazer among its consumer goods peers. Mike Hsu, Chairman and Chief Executive Officer of Kimberly-Clark, will continue to serve as the Chairman and CEO of the combined company. He sounded hopeful that the merger could help them do so, saying,
“With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life.” – Mike Hsu, Kimberly-Clark Chairman and CEO
In connection with the agreement, three sitting members of Kenvue’s board will join Kimberly-Clark’s board at closing. This addition to the portfolio is intended to help make a more seamless and effective integration while tapping into Kenvue’s strength in consumer health products.
Kenvue has made national news in recent weeks for its IPO. This spike in activity comes on the heels of Health Secretary Robert F. Kennedy, Jr., sowing fear by suggesting an unproven link between the pain reliever Tylenol and autism. Let’s be clear — this claim has received considerable deserved media scrutiny and has no medical basis.
