Landmark $40 Billion Deal Could Save Kenvue from Crisis Amidst Tylenol Fallout
In a bold move, Kimberly-Clark is set to acquire Kenvue, the beleaguered consumer health conglomerate behind Tylenol, in a deal worth over $40 billion. The deal comes as Kenvue faces mounting challenges, including sharp stock market declines and intense scrutiny from government officials.
Just weeks ago, former US President Donald Trump sparked controversy by claiming that Tylenol increases the risk of autism in children when used by pregnant women. However, this assertion has been largely dismissed by scientists and contradicted by studies. The controversy has further compounded Kenvue's struggles, which include ousted CEO and stock market downturns.
The deal will see Kimberly-Clark merge with Kenvue to create a global health and wellness leader, positioning the company for new growth opportunities. Mike Hsu, chairman and CEO of Kimberly-Clark, hailed the acquisition as an "exciting opportunity" that would bring together two iconic companies. Larry Merlo, Kenvue's chairman, echoed this sentiment, stating that the deal will create a uniquely positioned global leader in consumer health.
Kenvue has been facing lawsuits related to its baby powder products and has also pushed back against Trump administration claims about acetaminophen, usually branded as Tylenol. The company maintains that independent science clearly shows that taking acetaminophen does not cause autism.
As part of the deal, Kimberly-Clark expects around $2.1 billion in annual cost savings. However, Kenvue's financial struggles persist, with net sales falling 3.5% in the last quarter and warning of further declines this year.
The acquisition marks a significant shift for both companies as they navigate an increasingly competitive consumer goods market marked by value-seeking shoppers and trade tensions. The deal is expected to close in the second half of 2026.
In a bold move, Kimberly-Clark is set to acquire Kenvue, the beleaguered consumer health conglomerate behind Tylenol, in a deal worth over $40 billion. The deal comes as Kenvue faces mounting challenges, including sharp stock market declines and intense scrutiny from government officials.
Just weeks ago, former US President Donald Trump sparked controversy by claiming that Tylenol increases the risk of autism in children when used by pregnant women. However, this assertion has been largely dismissed by scientists and contradicted by studies. The controversy has further compounded Kenvue's struggles, which include ousted CEO and stock market downturns.
The deal will see Kimberly-Clark merge with Kenvue to create a global health and wellness leader, positioning the company for new growth opportunities. Mike Hsu, chairman and CEO of Kimberly-Clark, hailed the acquisition as an "exciting opportunity" that would bring together two iconic companies. Larry Merlo, Kenvue's chairman, echoed this sentiment, stating that the deal will create a uniquely positioned global leader in consumer health.
Kenvue has been facing lawsuits related to its baby powder products and has also pushed back against Trump administration claims about acetaminophen, usually branded as Tylenol. The company maintains that independent science clearly shows that taking acetaminophen does not cause autism.
As part of the deal, Kimberly-Clark expects around $2.1 billion in annual cost savings. However, Kenvue's financial struggles persist, with net sales falling 3.5% in the last quarter and warning of further declines this year.
The acquisition marks a significant shift for both companies as they navigate an increasingly competitive consumer goods market marked by value-seeking shoppers and trade tensions. The deal is expected to close in the second half of 2026.