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Investing.com -- Kimberly-Clark has agreed to purchase Kenvue in a cash and stock transaction that values Kenvue at an enterprise value of approximately $48.7 billion.
Under the terms of the deal, Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share they own. This represents a total consideration of $21.01 per share based on Kimberly-Clark’s closing price on October 31.
Kenvue shares jumped more than 18% in premarket trading following the announcement, while Kimberly-Clark shares extended their decline to more than 13%.
Kimberly-Clark has secured committed financing from JPMorgan for the transaction. The company plans to fund the cash portion of the deal through a combination of cash from its balance sheet, proceeds from new debt issuance, and proceeds from the previously announced sale of a 51% stake in its International Family Care and Professional business.
The deal comes amid investor concerns regarding Kenvue’s Tylenol products, which face ongoing lawsuits and recent political statements alleging an unproven link between prenatal acetaminophen use and autism/ADHD in children.
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