• Kimberly-Clark is acquiring Kenvue, the maker of Tylenol, for approximately $48.7 billion.
• The deal combines brands like Huggies and Neutrogena, aiming for annual revenues of $32 billion.
• Kenvue’s recent troubles include a plunge in sales and lawsuits amid claims linking Tylenol to autism.
• The merger is expected to close in the second half of 2026, pending shareholder approval.

Kimberly-Clark announced its plans to acquire Kenvue in a cash-and-stock deal valued at approximately $48.7 billion. This merger aims to create one of the largest consumer health conglomerates in the United States, uniting brands like Huggies, Neutrogena, and Tylenol under one roof. Kenvue shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly-Clark for each Kenvue share, valuing Kenvue shares at $21.01, based on the closing price on Friday, according to Reuters.

The combined entity is expected to generate about $32 billion in annual revenue by 2025, creating substantial economies of scale and enhancing market presence. Kimberly-Clark’s CEO Mike Hsu will lead the merged company, with significant operations retained at Kenvue facilities, according to Los Angeles Times and India Times.

However, Kenvue has faced significant challenges, including a drop in sales and legal issues linked to assertions from the Trump administration that Tylenol could increase autism risk. Kenvue has publicly refuted these claims, stating that "independent, sound science clearly shows that taking acetaminophen does not cause autism," as reported by NPR and CBS News.

The acquisition is expected to close in the second half of 2026, pending approval from shareholders of both companies. Analysts have expressed mixed feelings about the deal, particularly given Kenvue's troubled history since its spin-off from Johnson & Johnson in 2023, which has included a decline in share price and ongoing litigation risks related to its products, according to BBC and Los Angeles Times.

Despite these challenges, both companies have identified potential cost synergies of about $1.9 billion within three years post-merger, portraying a positive outlook towards operational efficiency and market consolidation, as highlighted by SFGate and CBS News.