Nov. 5 at 6:34 PM
A merger between Kimberly-Clark and Kenvue would have expanded Kimberly-Clark’s reach from diapers and tissues into consumer health products like Tylenol and Band-Aids. CEO Mike Hsu projected
$2.1 billion in annual synergies, boosting combined EBITDA to
$9 billion from
$6.9 billion.
Both firms are Dividend Aristocrats, but investors weren’t impressed. After the deal’s announcement, Kenvue shares rose 12% while Kimberly-Clark fell 15%, cutting their combined value by $ 2 billion. The deal valued Kenvue at 14× expected 2025 EBITDA, above its prior 10× multiple.
Analysts were skeptical. Deutsche Bank called the deal strategically logical but rated both stocks Hold. Citi’s Filippo Falorni saw “turnaround challenges” at Kenvue and rated Kimberly Sell. Kenvue shares had already dropped 33% in 2025, and its net income barely covered dividends. Litigation risks around Tylenol and alleged autism links add uncertainty.
$KMB $KVUE