Kimberly-Clark plans to purchase Tylenol manufacturer Kenvue, which has been under fire from the White House and has seen a decline in consumer demand. With a portfolio of some of the most widely used bathroom and medicine cabinet items in the world, the more than $40 billion (£30.5 billion) cash-and-stock acquisition would create a consumer giant.
Kleenex, Huggies diapers, and some of the most well-known toilet paper brands in the United States are all produced by Kimberly Clark. Zyrtec, Benadryl, Neutrogena, Aveeno, Band-Aid, and Tyleno are among the brands that Kenvue is well-known for. As more and more cost-conscious consumers switch to store-brand, less expensive versions of their items, both companies have been under pressure.
In 2023, Johnson & Johnson separated its consumer goods from its more lucrative and rapidly expanding medical technological and pharmaceutical divisions by spinning off Kenvue as a stand-alone corporation. At the time, executives contended that a more focused approach would enable each business to thrive.
However, activist investors have targeted Kenvue because of its struggling business and shares, which have dropped about 30% over the past year. They have purchased holdings in the company and pushed for reforms, including a potential sale.
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