Kleenex and Huggies maker Kimberly-Clark unveiled plans to buy Kenvue, the embattled consumer health conglomerate behind Tylenol, in a landmark deal for more than $40bn.
The blockbuster takeover comes weeks after Donald Trump claimed Tylenol heightens the risk of autism in children when it is used by pregnant women, an assertion hotly contested by scientists and contradicted by studies.
The high-profile claims compounded months of struggles for Kenvue, which ousted its CEO in July and endured sharp stock market declines.
Kenvue, which also makes Listerine mouthwash, Neutrogena skincare products and Johnson’s baby oil, was spun out of Johnson & Johnson two years ago. Its shares jumped 17% on Monday morning, while Kimberly-Clark dropped 12% in New York.
“We are excited to bring together two iconic companies to create a global health and wellness leader,” Mike Hsu, Kimberly-Clark chairman and CEO, said in a statement. Larry Merlo, Kenvue’s chairman, claimed the deal would create a “uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead”.
Last week, the US health and human services secretary, Robert F Kennedy Jr, acknowledged that there was no evidence proving Tylenol causes autism, but repeated his view that signs of a link between the two were “very suggestive”.
Apart from certain looming litigations against Tylenol, Kenvue is also facing lawsuits over claims that its baby powder products caused cancer, dampening investor sentiment.
Still, Kimberly-Clark said it expected about $2.1bn in annual cost savings from the acquisition, which it expects to close in the second half of 2026.
Kenvue has tried to push back hard against the Trump administration’s claims about acetaminophen, usually branded as Tylenol.
“We believe independent, sound science clearly shows that taking acetaminophen does not cause autism,” the firm said in a statement following Trump and Kennedy’s first announcement in September. “We strongly disagree with allegations that it does and are deeply concerned about the health risks and confusion this poses for expecting mothers and parents.”
Alongside Monday’s announcement, Kenvue reported that its net sales fell 3.5% in the last quarter, and warned they would fall by the low single digits over the course of the year.
Kimberly-Clark, based in Irving, Texas, which owns toilet paper brands including Andrex and Cottonelle, is also navigating a consumer goods environment increasingly fraught with a more value-seeking shopper, forcing companies, including sector bellwether Procter & Gamble to invest in smaller pack sizes, and trim underperforming business units. Trump’s aggressive tariff strategy has also heightened challenges for the wider industry.
Kimberly-Clark sold a majority stake in its international tissue business to the Brazilian pulp maker Suzano as part of a restructuring, proceeds from which are expected to help the Kenvue buyout, the company said on Monday.
Reuters contributed reporting