Irving-based Kimberly-Clark is set to acquire New Jersey-based Kenvue Inc. in a multi-billion-dollar deal.
Kenvue is a standalone company spun off from Johnson & Johnson, and it is the maker of the popular pain reliever Tylenol.
Kimberly-Clark, maker of widely sold brands like Kleenex and Huggies, will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction that values the beleaguered Kenvue at an enterprise value of roughly $48.7 billion.
Kenvue has been under fire recently over alleged links between acetaminophen, the active ingredient in Tylenol, and a higher risk of children developing autism when their mother uses the drug during pregnancy. Last week, The Dallas Express reported that Texas Attorney General Ken Paxton is suing Kenvue and Johnson & Johnson, accusing the companies of dishonestly marketing the painkiller to pregnant women while concealing the potential health risks.
According to the lawsuit, Johnson & Johnson violated Texas law by transferring liabilities to its consumer spinoff, Kenvue, in an attempt to shield the multinational pharmaceutical company from potential lawsuits.
Despite the controversy, Kimberly-Clark is proceeding with the acquisition.
“We are excited to bring together two iconic companies to create a global health and wellness leader,” said Mike Hsu, Kimberly-Clark Chairman and Chief Executive Officer, in a press release.
“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.”
According to Hsu, the acquisition represents the “next step” in the company’s transition to focus more on “higher-growth, higher-margin businesses.”
“Our combination with Kimberly-Clark unites two highly complementary portfolios filled with iconic, beloved brands and everyday essentials that people trust and count on throughout their lives,” said Kenvue’s Chief Executive Officer, Kirk Perry.