Huggies maker strikes $48.7B deal to buy Tylenol parent

Kimberly-Clark, the maker of Huggies and Kleenex, announced a $48.7 billion deal to acquire Kenvue, the parent company of Tylenol, creating the second-largest consumer products giant in the world.

The deal, expected to close mid-2026, will bolster Kimberly-Clark’s healthcare portfolio to better compete with Procter & Gamble’s $350 billion market cap empire, which owns Vicks and Pepto-Bismol.

The new company is projected to generate $32 billion in annual revenue, bringing together billion-dollar brands including Johnson’s Baby, Listerine, Clean & Clear, Band-Aid, Tylenol, and Depends. 

The companies boasted that their products would “touch nearly half the global population through every stage of life.”

Following the announcement, Kenvue shares jumped 12%, while Kimberly-Clark’s fell 14%.

However, the deal faces challenges. It comes amid controversy after President Donald Trump made unfounded claims linking acetaminophen (Tylenol) use during pregnancy to autism—allegations Kenvue strongly denied. Tylenol sales have dropped since then.

Kenvue, spun off from Johnson & Johnson in May 2023, has seen its stock fall nearly 35% since its IPO and currently holds a market value of about $27 billion.

The acquisition ranks as the third-largest deal of 2025, following Union Pacific’s $72 billion merger with Norfolk Southern and Saudi Arabia’s $55 billion purchase of Electronic Arts.