Big Moves in the Consumer Goods World: Kimberly-Clark Takes Over Kenvue

A huge deal just went down in the world of consumer goods. Kimberly-Clark, the company behind Kleenex and Huggies, is buying Kenvue, the maker of Tylenol and other well-known brands. The price tag? A whopping $40 billion. This move comes as Kenvue has been dealing with some serious challenges, especially around Tylenol. Kenvue's stock has taken a hit this year because of claims linking Tylenol to autism. These claims have been made by U. S. health officials, but there's no new evidence to back them up. President Trump even weighed in, telling pregnant women to avoid Tylenol. Despite this, Kenvue's stock shot up 20% when the deal with Kimberly-Clark was announced. Kimberly-Clark's stock, on the other hand, dropped more than 10%. If this drop sticks, it could bring the company's value to a low not seen in years. Kenvue was once part of Johnson & Johnson but was spun off in 2023. Since then, it's been struggling to find its way as a standalone company. Activist investors have been pushing for changes at Kenvue. In March, Jeffrey Smith from Starboard Value took a seat on Kenvue's board. Then, in July, the company's CEO stepped down, and a review of the company's strategy was announced.Under the deal, Kimberly-Clark shareholders will own about 54% of the new company. Together, they'll bring in around $32 billion in annual revenue and $7 billion in operating profit. The companies also expect to save nearly $2 billion by cutting costs over the next three years. Kenvue makes a lot of popular products like Band-Aid, Listerine, and Neutrogena. But lately, Tylenol has been in the spotlight because of the autism claims. This could give new life to hundreds of lawsuits already filed against the company. Scientists have been studying the link between Tylenol and neurodevelopmental disorders for years, but the results are mixed. Kenvue doesn't report Tylenol's revenue, but it's estimated to bring in about $1 billion a year. Kenvue also sells baby powder products that have caused legal trouble for Johnson & Johnson. The company has been trying to settle claims that its talc-based baby powder caused cancer. In March, a federal bankruptcy judge rejected Johnson & Johnson's latest settlement offer. The deal between Kimberly-Clark and Kenvue is expected to close in the second half of 2026, pending shareholder and regulatory approvals. Mike Hsu, Kimberly-Clark's CEO, will lead the new company. The headquarters will be in Irving, Texas, but Kenvue's locations will remain significant.