Kimberly-Clark Completes Acquisition of Kenvue, Expanding Global Consumer Health and Personal Care Portfolio

Kimberly-Clark Corporation (NASDAQ: KMB) has completed its acquisition of Kenvue, combining two major consumer health and personal care businesses to establish a global company with a portfolio of 10 billion-dollar brands.

The combined portfolio includes Huggies, Listerine, Cottonelle, Neutrogena, Depend, Tylenol, Kleenex, Johnson's Baby, Kotex and Scott. The acquisition expands Kimberly-Clark's presence across personal care, consumer health and wellness categories.

"Today marks a defining moment in Kimberly-Clark's 154-year history as we welcome Kenvue and hit the ground running as one company," said Mike Hsu, Chairman and Chief Executive Officer of Kimberly-Clark.

Hsu said the two companies share a heritage of developing consumer product categories and building relationships with consumers. He added that the combined business would bring together consumer insights, science, innovation, brand-building expertise and commercial execution to address changing consumer health and care needs.

"Our focus now is to move with speed and purpose to unlock the full potential of this combination," Hsu said. He added that the companies' shared commitment to care and execution would support value creation for consumers, customers and shareholders.

Combined Portfolio Targets Consumer Health and Personal Care Markets

Kimberly-Clark said the combined company will operate across several major consumer health and personal care categories, including baby care, women's health and active aging.

The company highlighted increasing consumer demand for more personal and proactive healthcare solutions, noting that global spending on health and wellness exceeds $500 billion annually.

The combined business will focus on three strategic pillars: Better Care, More Hands and Smarter Health. According to Kimberly-Clark, these priorities are intended to expand access to its brands and provide products and solutions across different stages of consumers' health and care journeys.

The company also plans to apply its Powering Care growth strategy to Kenvue's portfolio, focusing on accelerating innovation, strengthening brands and improving commercial execution. Kimberly-Clark said it has appointed a leadership team with experience and technical capabilities to support the integration and business operations.

Kimberly-Clark Reaffirms $2.1 Billion Synergy Target

Kimberly-Clark reaffirmed its anticipated run-rate synergies of approximately $2.1 billion following the acquisition.

The target includes approximately $1.9 billion in cost synergies, expected to be captured within the first three years after closing, and approximately $500 million in incremental profit from revenue synergies, expected within four years.

The company expects approximately $300 million in reinvestment, partially offsetting the revenue-related benefits. Kimberly-Clark said it has substantially developed a pipeline of cost and revenue initiatives as part of its integration plan.

Four Business Segments Established

Following the acquisition, Kimberly-Clark will operate through four business segments, with the following approximate annual sales:

• North America: $18.0 billion.

• Asia Pacific Focus Markets: $4.3 billion, covering Greater China, Australia and New Zealand, South Korea and Indonesia.

• Europe, Middle East and Africa (EMEA): $5.0 billion.

• Enterprise Markets: $4.3 billion, including Latin America, India, Southeast Asian markets and Japan.

The segment structure is intended to support management and commercial execution across the combined company's global operations.

Board of Directors Expanded to 13 Members

Following the acquisition, Kimberly-Clark's Board of Directors comprises 13 members, including three members of Kenvue's former board.

The board consists of Mike Hsu, Chairman and Chief Executive Officer; Sherilyn S. McCoy, Lead Independent Director; Richard E. Allison, Jr.; Sylvia M. Burwell; John W. Culver; Deeptha Khanna; S. Todd Maclin; Deirdre A. Mahlan; Larry Merlo; Kirk Perry; Joseph Romanelli; Dunia A. Shive; and Mark T. Smucker.

The acquisition brings Kimberly-Clark's established hygiene and personal care portfolio together with Kenvue's consumer health brands, expanding the combined company's presence across global consumer health and wellness markets.