November 10, 2025 | Consumer Discretionary | North America | Active
On 3-Nov-25, Huggies and Kleenex maker Kimberly-Clark announced a definitive deal to acquire Kenvue, the paracetamol and mouthwash group, at a $48.7bn enterprise value. Kimberly-Clark is offering $3.50 in cash plus 0.14625 Kimberly-Clark shares for each Kenvue share, worth $21.01 per share based on the prior day’s close, with a 46.2% one-day takeover premium. Through completion, Kenvue may continue to distribute quarterly dividends up to $0.21 per share, while Kimberly-Clark may pay and periodically increase its regular quarterly dividend “consistent with past practice.” Both boards unanimously approved the deal, and, on closing, Kimberly-Clark shareholders will own 54% of the combined company; Kenvue shareholders will own the remaining 46%. Kimberly-Clark has obtained a financing commitment from JPMorgan Chase and will fund the cash portion with cash on hand, new debt, and proceeds from selling a 51% stake in its International Family Care and Professional (IFP) business. Kimberly-Clark CEO Mike Hsu will lead the combined company, which will remain headquartered in Irving, Texas. The transaction requires approvals from both sets of shareholders and regulatory clearances, including HSR and foreign antitrust and FDI signoffs. The merger agreement includes both with standard MAC carve-outs (war, pandemics, tariffs) as well as a carve out specific to addressing actions specifically against Kenvue’s Tylenol over-the-counter (OTC) drug. Both parties have agreed to non-solicit, with a fiduciary out, and to use reasonable best efforts, but they are ...
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