Kenvue is set to be acquired by Kimberly-Clark in a US$48.7bn deal.
The tie-up will see Kenvue’s health and beauty brands such as Neutrogena, Aveeno, OGX and Listerine, sit under the same umbrella as Kimberly-Clark’s personal care brands.
Kenvue kicked off a strategic review of its business in July amid falling sales and job cuts.
At the time it said it was considering “a broad range of potential alternatives” for the business.
“Following the board's comprehensive review of strategic alternatives for Kenvue, we are pleased to have reached this agreement with Kimberly-Clark that delivers significant upfront value for our shareholders and substantial upside potential through ownership in the combined company,” said Larry Merlo, Chair of the Board of Kenvue.
“Bringing together Kenvue and Kimberly-Clark creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead.
“We are excited about this next chapter for Kenvue and confident this combination represents the best path forward for our shareholders and all other stakeholders."
The acquisition marks Kimberly-Clark’s expansion into the beauty category, and means the company can “provide preferred solutions through every stage of life”, it said in a statement.
Brands under its umbrella already include Kleenex, Huggies, Andrex and Kotex.
Kenvue was spun off from Johnson & Johnson (J&J) in 2023, and also owns a number of brands in the healthcare space such as Tylenol, Benadryl and Nicorette.
“We are excited to bring together two iconic companies to create a global health and wellness leader," said Mike Hsu, Chairman and CEO of Kimberly-Clark, who will lead the combined company.
“Kenvue is uniquely positioned at the intersection of CPG and healthcare, with exceptional talent and a differentiated brand offering serving attractive consumer health categories.
“With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life.”
The combined company is projected to produce annual sales of $32bn.
This would make it the second largest company in the health and wellness sectors in sales terms, behind Procter and Gamble ($54bn) and ahead of Unilever ($31bn), according to a joint presentation to investors.
Cost savings from joining together are expected to be $2.1bn, and realised in the first two years.
The deal has been approved by the boards of both companies, and is expected to close in the second half of 2026, subject to regulatory and shareholder approval.
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