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Kenvue (NYSE: KVUE) shares surged Monday, climbing by double digits as investors cheered news that consumer goods giant Kimberly-Clark (NASDAQ: KMB) plans to acquire the Tylenol maker By press time, KVUE stock was up 14% to $16.40, although it remains down 22% year–to-date. The rally comes despite lingering controversy over recent comments by President Donald Trump, who suggested without evidence that Tylenol use during pregnancy could cause autism. The planned acquisition in a deal valued at $48.7 billion would combine Kimberly-Clark’s well-known personal care and paper products such as Huggies, Kleenex, and Cottonelle with Kenvue’s portfolio of over-the-counter health brands, including Tylenol, Band-Aid, Listerine, and Zyrtec. Together, the two companies would control ten brands each generating more than $1 billion in annual sales, creating one of the largest consumer health and household product companies in the world. Particulars of the Kunvue acquisition The transaction, expected to close in the second half of 2026, is a mix of cash and stock valued at roughly $40 billion on an equity basis, excluding debt. Notably, the deal values Kenvue at $19.25 per share, a significant premium to its recent trading price, which helps explain Monday’s sharp rise in the stock. Kimberly-Clark shares, meanwhile, fell about 13% as investors digested the cost of the acquisition and potential legal risks tied to Kenvue’s portfolio. Kenvue, which was spun out of Johnson & Johnson (NYSE: JNJ) in 2023, has faced persistent headwinds since its public debut. Its shares have fallen roughly 35% from the IPO price amid lawsuits and controversy surrounding its products. Most recently, the company has been battling public scrutiny after Trump’s remarks and ongoing litigation linked to talc-based baby powder. Despite the negative headlines, Kenvue reported better-than-expected earnings this week, posting $3.8 billion in sales and an adjusted profit of $0.28 per share. Featured image via Shutterstock
