Changes in US stocks | The $48.7 billion deal triggered a huge shock in stock prices: the “acquirer” Kimberly (KMB.US) plummeted 15%, and Kenvue (KVUE) surged 20%

The Zhitong Finance App learned that Kimberly (KMB.US) announced that it has reached a deal to acquire all tradable shares of Tylenol manufacturer Kenvue (KVUE) in the form of cash plus shares. According to an agreement unanimously passed by both boards of directors, Kenvue's shareholders will receive $3.50 per share in cash and 0.14625 shares of Kimberly's stock in exchange, and the transaction is valued at $21.01 per share. Before the market on Monday, Kimberly shares fell more than 15%, while Kenvue rose more than 20%.

The deal is expected to close in the second half of 2026, subject to shareholder approval and regulatory approval. Based on the closing price of Kimberly's common stock on October 31, 2025, Kenvue's corporate value is approximately $48.7 billion. The deal is expected to bring value growth to Kenvue's shareholders, with an initial cash consideration of $6.8 billion.

Mike Hsu will be the chairman and CEO of the merged company. When the merger is complete, Kenvue's three board members will join Kimberly's board of directors. “We are thrilled to be merging these two representative companies to create a global health leader,” Hsu said.

The merged company will continue to maintain Kimberly's headquarters in Evelde, Texas, and maintain a significant business layout in various Kenvue regions. According to current forecasts, the combined company expects annual net revenue of approximately $32 billion in 2025, with adjusted EBITDA of approximately $7 billion.

The two companies are expected to achieve approximately $1.9 billion in cost synergy and additional profit from a $500 million revenue synergy, but this benefit will be offset by a $300 million reinvestment. Cost savings should be realized within three years of closing the transaction, while revenue growth should be realized within four years. To achieve these synergies, the company would need to invest approximately $2.5 billion in cash costs over the first two years after closing the deal.

Kimberly and Kenvue will hold a joint conference call and live webcast on Monday at 8 a.m. EST (Monday at 21 p.m. Beijing time) to discuss the deal.