With Acquisition, Kimberly-Clark Bets That Tylenol Can Weather the Storm

Kimberly-Clark has agreed to acquire Kenvue, the maker of Tylenol, for $40 billion. This acquisition represents a significant bet by Kimberly-Clark that Tylenol can overcome the ongoing controversy surrounding unproven claims that its use during pregnancy can cause autism. These allegations, notably amplified by President Trump and his administration, have led to a lawsuit against Kenvue by the state of Texas and may revitalize hundreds of existing lawsuits from families alleging neurodevelopmental disorders in their children linked to prenatal acetaminophen use. The controversy has created significant public relations and financial challenges for Kenvue, a relatively new company spun off from Johnson & Johnson's consumer health brands, which also include well-known products like Band-Aid and Neutrogena. Kenvue had been seeking to improve its financial performance, which led to acquisition talks. Kimberly-Clark's interest in Kenvue stems from the strength of its brands, cust... download the app to read more