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Investing.com -- Kenvue Inc (NYSE:KVUE) stock dropped 1.6% aftermarket on Thursday following reports that the consumer health company is considering divesting several smaller brands from its skin health and beauty portfolio.
According to Reuters sources familiar with the matter, Kenvue is exploring the sale of brands including Clean & Clear, Maui Moisture, Neostrata, German baby care brand Bebe, and Japanese brand Dr.Ci:Labo. The company, which was spun off from Johnson & Johnson (NYSE:JNJ) in 2023, reportedly plans to retain its larger brands such as Neutrogena and Aveeno.
The potential divestiture appears to be part of a strategic effort to streamline operations by pruning underperforming segments while focusing on core products. Sources indicated that Kenvue has engaged Goldman Sachs to assist with the divestment process, though they cautioned that the final package of brands for sale could change and no deal is guaranteed.
Kenvue’s skin health and beauty unit comprises approximately a dozen brands. The reported move comes as the relatively new standalone company seeks to optimize its portfolio following its separation from Johnson & Johnson last year.
The stock’s decline suggests investors are processing how these potential divestitures might impact the company’s future growth prospects and overall business strategy.
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