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By Jordan Valinsky, CNN New York (CNN) — Huggies’ maker Kimberly-Clark announced Monday it will buy Tylenol’s parent company Kenvue in a nearly $50 billion deal, creating a massive consumer products conglomerate. The acquisition comes a few weeks after President Donald Trump made unfounded claims linking Tylenol to autism in pregnant woman, sending Kenvue’s stock sharply lower. The company has staunchly pushed back against his administration’s accusations. The companies said that the combined business will bring together 10 billion-dollar brands and will drive annual revenue of $32 billion. The new company will make products that “touch nearly half the global population through every stage of life,” including Johnson’s baby products, Clean & Clear skin care, Kleenex, Listerine mouthwash, and Depends adult diapers, the companies said in a statement. The cash-and-stock deal has Kimberly-Clark (KMB) paying $21.01 for each Kenvue (KVUE) share, a hefty premium over the $14.37 of its Friday closure. The stock soared nearly 20% in premarket trading. Kimberly-Clark’s stock fell nearly 16% in premarket trading. Kenvue was spun off in 2022 from Johnson & Johnson, with J&J keeping its recognizable name for its larger pharmaceutical business unit and offloading its consumer brands. It was widely expected to be an acquisition target. The transaction is scheduled to close in the second half of next year. Following the closing, Kimberly-Clark shareholders will own about 54% of the newly combined company with Kenvue shareholders owning the rest.
