Kimberly-Clark (NASDAQ:KMB) shares tumbled more than 13% on Monday after the company announced a major cash-and-stock acquisition of Kenvue (NYSE:KVUE), valuing the consumer health firm at an enterprise value of roughly $48.7 billion.
Under the agreement, Kenvue shareholders will receive $3.50 per share in cash and 0.14625 shares of Kimberly-Clark for each Kenvue share held. The deal equates to a total consideration of $21.01 per share, based on Kimberly-Clark’s October 31 closing price.
Following the news, Kenvue shares surged over 18% in premarket trading, while Kimberly-Clark’s stock extended its sharp losses amid investor concern over the financial and legal implications of the deal.
Kimberly-Clark said it has secured committed financing from JPMorgan and plans to cover the cash portion of the purchase using a combination of on-hand cash, new debt issuance, and proceeds from the earlier sale of a 51% stake in its International Family Care and Professional division.
The acquisition announcement comes as Kenvue faces growing legal risks tied to its Tylenol product line, with ongoing lawsuits and political scrutiny over claims — still unproven — that prenatal acetaminophen use may be linked to autism and ADHD in children.
Investors expressed concern that the litigation could complicate the deal’s long-term outlook, despite Kimberly-Clark’s assurances of strategic benefits and growth synergies from integrating Kenvue’s consumer health brands.