Tylenol Maker Sold to Kimberly-Clark in $48.7 Billion Deal After Trump, RFK Jr Target Company Over Autism Claims

In a blockbuster $48.7 billion merger that has sent shockwaves through the health and consumer goods sectors, Kimberly-Clark has announced its purchase of Kenvue — the maker of Tylenol, Listerine, and Band-Aid — just weeks after President Donald Trump and Health Secretary Robert F. Kennedy Jr. publicly targeted the drug company over its most iconic product.

The acquisition will create one of the largest consumer health conglomerates in the world, combining Kimberly-Clark’s household brands like Huggies, Cottonelle, and Kleenex with Kenvue’s stable of over-the-counter medicines and hygiene products. The combined company is expected to generate about $32 billion in annual revenue.

Under the terms of the deal, Kimberly-Clark shareholders will own approximately 54% of the merged company, while Kenvue shareholders will hold 46%. Kenvue shareholders will receive $3.50 in cash and 0.14625 Kimberly-Clark shares per Kenvue share — valuing the deal at roughly $21.01 per share based on Friday’s market close.

The merger comes at a politically charged moment for Kenvue. The company, spun off from Johnson & Johnson in 2023, has faced mounting scrutiny since RFK Jr. — now serving as U.S. Health Secretary — reignited a long-debunked theory linking Tylenol use during pregnancy to autism.

During a recent Cabinet meeting, Kennedy reportedly told President Trump and other officials that “the connection is being ignored for political reasons,” even while acknowledging the absence of any medical proof. Trump echoed Kennedy’s remarks, suggesting that “Big Pharma has gotten away with too much for too long.”

The remarks sent shockwaves through Wall Street and the public health community, as medical experts rushed to clarify that no credible evidence supports the alleged Tylenol-autism link. But the political fallout was swift — and for Kenvue, costly.

In July, Kenvue CEO Thibaut Mongon resigned amid a strategic review, as activist investors began pressing for drastic restructuring or a sale. Board member Kirk Perry has since taken over as interim CEO.

For Kimberly-Clark, the takeover represents an aggressive expansion into health and wellness products, at a time when consumer demand for trusted personal care brands has soared.

“We will serve billions of consumers across every stage of life,” said Kimberly-Clark CEO Mike Hsu, who will lead the combined company from its Irving, Texas headquarters. Three Kenvue directors will also join the new board.

Analysts estimate that the merger could yield nearly $1.9 billion in cost savings within three years, though investors were mixed on the announcement: Kimberly-Clark’s shares fell 15% in premarket trading, while Kenvue’s stock jumped more than 20%.

The sale marks the end of Kenvue’s brief independence after Johnson & Johnson spun off the company as part of a corporate breakup in 2023. The deal still requires shareholder approval from both companies and regulatory clearance, with final completion expected in the second half of next year.

For critics, the timing of the acquisition raises questions about whether political pressure — rather than market fundamentals — played a role in Kenvue’s sudden sale.

As one industry analyst put it bluntly:

“When the White House and the Health Secretary start targeting a company’s flagship product, it’s not just business — it’s politics. This deal looks like a corporate escape plan.”