Kimberly-Clark CEO Mike Hsu Bets on Growth with Kenvue Deal

Kimberley-Clark has announced an agreement to buy Kenvue in a deal valued at over US$40bn that Kimberly-Clark CEO Mike Hsu says is part of the powerful next step in its growth journey.

The transaction combines two renowned US companies, creating a consumer giant with the likes of Tylenol, Band-Aid, Kleenex and Huggies under one leadership umbrella, and marking one of the biggest deals in the history of the consumer sector.

The firms report that the cash-and-stock deal values Kenvue at about US$48.7bn.

In Kimberly-Clark’s announcement of the deal, executives said the firms have “complementary strengths” and a highlighted how as combination of the two will accelerate growth.

They said that together the firms are on track to generate US$32bn in sales in 2025, with the transaction expected to complete in the second half of 2026.

Announcing the deal, Mike said: “We are excited to bring together two iconic companies to create a global health and wellness leader.

“Kenvue is uniquely positioned at the intersections of CPG and healthcare, with exceptional talent and a differentiated brand offering serving attractive consumer health categories.

“With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of customers across every stage of life.”

Mike will be Chairman and CEO of the combined company, with three members of the Kenvue Board joining the Kimberly-Clark Board at closing.

Leadership strategy

When Mike originally joined Kimberly-Clark in 2017 as Chief Operating Officer, many of its 23 businesses were struggling, according to a report by the Wall Street Journal.

He took on the leadership role in 2019 and has since helped the units make gains in what he describes as “a significant transformation” over the last couple of years, focused on moving its portfolio to “high-growth, higher-margin businesses”.

Kimberly-Clark’s Powering Care strategy is a core pillar of its accelerated growth, operational efficiency and enhanced organisational alignment goals.

In a statement in 2024, Mike referred to it as a transformative multi-year plan designed to “turbocharge our commercial, cost and organisational capability”.

As part of the strategy, the firm has been restructured into three highly focused business segments - Personal Care, Family Care, and Professional - which Mike says "unleashes our global scale".

Next steps for Kenvue

The move to look outside the world of Huggies diapers, Kleenex tissues and Scott paper towels may come with its restrictions.

When Johnson & Johnson spun off from Kenvue as a standalone company in 2023, separating its faster growing pharmaceutical business from its consumer products, executives argued a narrower focus would help the company.

However, Kenvue’s shares sank last month, according to the BBC, when the Trump administration publicly linked use of its Tylenol product during pregnancy to autism, despite scientists saying there is inconclusive evidence to support this.

Sales in the first nine months of 2025 were down almost 4% compared with 2024.

Discussing the deal, Kenvue’s Chair of the Board Larry Merlo said: “Following the Board’s comprehensive review of strategic alternatives for Kenvue, we are pleased to have reached this agreement with Kimberly-Clark that delivered significant upfront value for our shareholders and substantial upside potential through ownership in the combined company.”

Kenvue CEO Kirk Perry said: “Our combination with Kimberly-Clark unites two highly complementary portfolios filled with iconic, beloved brands and everyday essentials that people trust and count on throughout their lives.

“Our teams share a passion for delivering science-backed solutions that play a meaningful role in homes and communities around the world.”

He added that together, the companies hope to innovate even faster and strengthen their leadership.