00:00Kimberly-Clark announced on Monday its acquisition of Kenview in a deal valued at nearly $49 billion.
00:07This merger unites Kimberly-Clark, known for Huggies diapers and Kleenex, with Tylenol's manufacturer, Kenview.
00:14Tylenol has recently faced scrutiny after President Donald Trump's unsubstantiated claims linking the drug to autism.
00:22Kimberly-Clark will pay $21.01 a share for Kenview in a cash and stock deal valued at $48.7 billion, the Consumer Health brand said in a statement.
00:32Since May 2023, Kenview's stock has fallen 35% when the company was spun out of Johnson & Johnson.
00:40Shares of Kenview rose roughly 18% in pre-market trading Monday, while Kimberly-Clark's stock stumbled roughly 14.8%.
00:49Both Kenview and Kimberly-Clark said they expect the deal to close in the second half of 2026, following approval from shareholders, regulators, and, quote,
00:59satisfaction of other customary closing conditions.
01:03Kenview's independence from Johnson & Johnson was short-lived and featured legal turmoil, including thousands of lawsuits that claim the company's talcum baby powder caused cancer.
01:13Kenview and Johnson & Johnson have agreed to pay hundreds of millions of dollars in damages related to the claims,
01:19and Johnson & Johnson has proposed paying billions more for opharian cancer claims linked to the powder.
01:26In September, Trump urged Americans to, quote-unquote, fight like hell not to take Tylenol,
01:32claiming the drug's main ingredient, acetaminophen, could cause autism in children when used by pregnant women.
01:39Kenview has disputed the claim, arguing, quote,
01:42sound science clearly states that acetaminophen does not cause autism.
01:47Texas Attorney General Ken Paxton announced last week the state had sued Kenview and Johnson & Johnson,
01:54alleging the company's deceptively marketed Tylenol while knowing the drug posed an increased risk of autism.
02:00Kenview told Forbes the drug is the, quote,
02:02safest pain reliever option for pregnant women, adding it would, quote,
02:07vigorously defend ourselves against these claims.
02:10Kenview on Monday reported third-quarter sales that missed Wall Street's projections.
02:15Revenues declined 3.5% to $3.76 billion, below estimates of $3.8 billion, according to FactSet.
02:25For more on this story, check out the article at the link in the description.
