Investing.com -- Kimberly-Clark acquires Kenvue as part of a transaction in cash and shares. The enterprise value of Kenvue is estimated to be approximately $48.7 billion.
Under the terms of the transaction, Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share. This represents a total consideration of $21.01 per share, based on Kimberly-Clark's closing price on October 31.
Kenvue shares rose more than 18% in pre-market trading following the announcement, while Kimberly-Clark shares extended their losses to more than 13%.
Kimberly-Clark has received a firm financing commitment from JPMorgan for the transaction. The company plans to finance the cash portion of the acquisition through a combination of cash from its balance sheet, proceeds from the issuance of new debt and proceeds from the previously announced sale of a 51% stake in its International Family Care and Professional business.
The acquisition comes amid investor concerns regarding Kenvue's Tylenol products. They are facing ongoing lawsuits and recent political statements alleging an unproven link between acetaminophen use during pregnancy and autism/ADHD in children.