Tylenol’s parent company is set to merge with the manufacturer of Huggies in a landmark $48.7 billion deal.
Kimberly- Clark, the company behind Huggies diapers, said on Monday that it would acquire the company behind Tylenol in a cash- and- stock sale worth nearly$ 50 billion.
The deal will combine two of the largest makers of consumer masses, bringing ménage names like Kleenex and Depend under the same commercial marquee.
Huggies company merge was made public after a week of contestation, during which former President Donald Trump falsely claimed that Tylenol use in gestation causes autism. Kenvue stock dropped as a result, but the company pushed back on the claims.
Tylenol parent merger is expected to produce about $48.7 billion corporate deal and will bring 10 billion-dollar brands together, the companies said in a statement. The performing portfolio of brands will “ reach near to 50 of the global population across all stages of life, ” including Johnson’s baby care, Clean & Clear skin care, Kleenex apkins, Listerine mouthwash, and Depends adult incontinence products.
Kimberly- Clark will pay$ 21.01 per share for Kenvue, a decoration of further than 46 over Kenvue’s ending share price of$ 14.37 on Friday. Shares of Kenvue climbed 19% in premarket trading on Monday, while Kimberly-Clark shares dropped 16%.
Kenvue was created when pharmaceutical giant Johnson & Johnson spun off its consumer health brands last year. Johnson & Johnson spinoff news retained its famous name for its drug business, leaving Kenvue to oversee Tylenol and the other well-known consumer brands.
Kenvue is expected to close Tylenol Huggies deal in the second half of next year, subject to regulatory approval. Kimberly-Clark shareholders will own about 54% of the combined business, while Kenvue shareholders will own 46%.
Analysts also cautioned that the acquisition comes with risks. Kenvue said on Monday that sales fell 4.4% in the quarter that ended on Sept. 28. Self-care, which includes Tylenol, saw a decline of 5.3% for the period.
