The maker of Kleenex buys the parent company of Listerine
The deal is valued at €42.2 billion
BarcelonaAmerican personal care products manufacturer Kimberly-Clark, owner of brands such as Kleenex and Scottex, has reached an agreement to acquire Kenvue, also American, which controls brands such as Listerine and Neutrogena, valuing it at $48.7 billion (approximately €42.2 billion). According to the agreement, unanimously approved by the boards of directors of both companies, each share of Kenvue will be exchanged for 0.146 shares of Kimberly-Clark and $3.50 in cash, representing a total price of $21.01 per share at closing. The transaction, one of the largest ever recorded globally in the consumer goods sector, is expected to close in the second quarter of next year, according to the planned schedule.
Thus, the current owners of Kimberly-Clark will gain control of 54% of the capital of the new company resulting from the merger, while Kenvue shareholders will control 46%. In fact, according to current projections, the new company will generate annual net revenues of $32 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $7 billion in 2025.
Furthermore, both companies have identified that the merger will generate $0 million in the first three years and increase earnings by approximately $500 million more from revenue synergies over four years. However, the transaction will require the new company to allocate approximately $300 million to a reinvestment program, in addition to the $2.5 billion in cash that Kimberly-Clark plans to invest in the two years following the closing of the deal.
Trump attacks on Kenvue
Kenvue has been an independent company since 2022, but it originated as the consumer healthcare division of the pharmaceutical company Johnson & Johnson. Recently, it has been embroiled in disputes with US President Donald Trump, who advised pregnant women against taking Tylenol, the brand under which the group markets acetaminophen in the US, arguing—without any scientific evidence to support this claim—that it causes autism.