Kimberly-Clark's acquisition of consumer healthcare company Kenvue, with an enterprise value of about $48.7 billion, closed on Monday, almost a year after it was first announced. Kenvue shareholders received $3.50 in cash plus almost 0.15 Kimberly-Clark shares for each Kenvue share, with existing Kimberly-Clark investors expected to own about 54% of the combined company. The cash portion was funded partly by $4.9 billion in senior notes and the sale of a 51% stake in its consumer paper and B2B hygiene business to Suzano, while the companies expect $2.1 billion in annual run-rate synergies within three years. Kimberly-Clark currently has a 54-year streak of dividend increases, while its share buybacks, which totaled $1 billion in 2024, fell to $0 in 2026. Kenvue's recent results are not included in the third-quarter report due on November 5, and the author believes the deal is a good move despite the high price.
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