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Company behind Huggies diapers buys Tylenol maker for $40B
04 Nov 2025

Kimberly-Clark Corp, the company behind popular brands like Kleenex and Huggies, has announced its plan to acquire Kenvue Inc.

The deal, worth around $40 billion in cash and stock, will see Kimberly-Clark take over the maker of Tylenol.

The acquisition comes at a time when Kenvue is struggling with declining demand for its products and facing criticism from the Trump administration.

Kenvue also makes Band-Aid, Zyrtec, Benadryl, Neutrogena
Market impact

The acquisition will create a consumer giant with some of the world's most commonly used bathroom and medicine cabinet products.

Along with Tylenol, Kenvue also makes Band-Aid, Zyrtec, Benadryl, Neutrogena and Aveeno.

However, both companies have been under pressure as price-conscious households increasingly opt for cheaper store-brand versions of their products.

Kenvue's financial struggles and activist investor interest
Investor attention

Kenvue was spun off as a standalone company by Johnson & Johnson in 2023, separating its faster-growing medical technical and pharmaceutical business from consumer products.

However, Kenvue's business and shares have struggled, down nearly 30% in a year.

This has made it a target for activist investors who have bought stakes and pushed for changes including a possible sale.

Controversy surrounding Tylenol and its impact on Kenvue
Controversy

Kenvue's shares fell last month after the Trump administration publicly linked use of Tylenol during pregnancy to autism.

This was despite scientists saying there is no conclusive evidence for such a claim.

The company's sales in the first nine months of this year are down nearly 4% compared to 2024, further highlighting its financial struggles.

Deal details and investor reaction
Transaction details

The deal values Kenvue at about $48.7 billion, with shareholders expected to receive about $21 per share. This includes $3.5 in cash and a portion of shares in Kimberly-Clark.

However, shares in Kimberly-Clark fell over 10% amid investor doubts about the deal's potential risks.

The transaction is expected to close in the second half of 2026, with Kimberly-Clark CEO Mike Hsu remaining at the helm post-acquisition.