09:03 AM EST, 11/03/2025 (MT Newswires) -- Kimberly-Clark ( KMB ) on Monday agreed to acquire consumer health company Kenvue ( KVUE ) in a cash-and-stock deal worth about $48.7 billion, creating a global health and wellness entity.

Kenvue's ( KVUE ) shareholders will receive $3.50 per share in cash, as well as 0.14625 Kimberly-Clark ( KMB ) shares, for a total consideration of $21.01 a share, the companies said in a joint statement. Kenvue's ( KVUE ) stock jumped 18% in the most recent premarket activity, while Kimberly-Clark ( KMB ) dropped 14%.

"Kimberly-Clark ( KMB ) has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster," according to Kimberly-Clark ( KMB ) Chief Executive Mike Hsu, who will lead the combined company as chairman and CEO. "This transaction is a powerful next step in our journey."

The deal, which requires approval from both companies' shareholders and clearance from regulators, is expected to complete in the second half of next year. Following completion, Kimberly-Clark's ( KMB ) investors are anticipated to hold a roughly 54% stake in the combined company, with Kenvue ( KVUE ) stockholders owning the remaining 46%. The combined company will retain Kimberly-Clark's ( KMB ) headquarters in Texas.

The combined entity is estimated to generate annual revenue of about $32 billion in 2025, based on current projections, according to the firms. The companies anticipate run-rate synergies of around $2.1 billion, including $1.9 billion in cost synergies that are expected to be realized in the first three years after the deal completes. Kimberly-Clark ( KMB ) forecasts $2.5 billion of cash costs to achieve these synergies.

The maker of Kleenex tissues aims to fund the transaction through a combination of cash, new debt issuance and proceeds from the company's previously announced sale of a 51% stake in its international family care and professional business.

"Following the board's comprehensive review of strategic alternatives for Kenvue ( KVUE ), we are pleased to have reached this agreement with Kimberly-Clark ( KMB ) that delivers significant upfront value for our shareholders and substantial upside potential through ownership in the combined company," Kenvue Chair Larry Merlo said. The transaction is projected to generate $6.8 billion upfront in cash for the company's shareholders.

In July, Kenvue ( KVUE ) said it launched a strategic review aimed at enhancing shareholder value. The company was separated from healthcare products giant Johnson & Johnson (JNJ) in 2023.

In a separate statement, the maker of products like Tylenol and Listerine reported third-quarter adjusted earnings of $0.28 per share, unchanged from the year before. The consensus on FactSet was for non-GAAP EPS of $0.26. Sales decreased 3.5% to $3.76 billion, trailing the Street's view for $3.82 billion. The company continues to expect adjusted EPS of $1 to $1.05 for full-year 2025, as well as sales to be down by low single digits.

Kenvue ( KVUE ) also named Kirk Perry as its permanent CEO, effective immediately, following his tenure as interim CEO since July 14.