Kimberly-Clark has announced its acquisition of Kenvue, the maker of Tylenol, in a deal valued at approximately $48.7 billion. This transaction will create a significant player in the consumer health goods market. Under the terms of the agreement, Kenvue shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly-Clark for each Kenvue share they own. This equates to a total of $21.01 per share based on Kimberly-Clark's recent closing price.

Following the merger, Kimberly-Clark shareholders will hold about 54% of the new entity, while Kenvue shareholders will own around 46%. The combined company is projected to generate annual revenues of about $32 billion by 2025. Both companies have identified potential cost savings of approximately $1.9 billion within the first three years post-acquisition.

Kimberly-Clark Chairman and CEO Mike Hsu expressed optimism about the merger, stating, "With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life." Hsu will continue as chairman and CEO of the merged company.

As part of the transition, three members from Kenvue's board will join Kimberly-Clark's board upon completion of the deal. The headquarters will remain in Irving, Texas, while maintaining a significant presence in Kenvue's locations.

The acquisition is expected to finalize in the second half of next year, pending approval from shareholders of both companies. Following the announcement, shares of Kimberly-Clark fell by more than 15% in pre-market trading, while Kenvue's stock rose by over 20%.