Kimberly-Clark Closes Kenvue Deal, Sets $3.1 Billion Integration Program
Kimberly-Clark has closed its acquisition of Kenvue, uniting brands such as Huggies, Kleenex, Tylenol and Listerine under one roof, and set out an estimated $3.1 billion integration program to capture the deal's promised savings, according to its 8-K filed Monday.
The deal closed on Nov. 2, one year to the day after the two companies signed their merger agreement. Each Kenvue share was converted into 0.14625 Kimberly-Clark shares plus $3.50 in cash, according to the filing. Kimberly-Clark said it delivered, or is obligated to deliver, an estimated 281,060,840 of its shares to former Kenvue holders.
Kenvue stock, which traded on the New York Stock Exchange under KVUE, stopped trading at the market open Monday, the company said.
The cost of putting the companies together
Kimberly-Clark's board approved a Kenvue Integration Program on Oct. 30, aimed at operating profit synergies by 2030. The company expects cumulative pre-tax charges of an estimated $3.1 billion through Dec. 31, 2029, made up of $2.5 billion in cash and $0.6 billion in non-cash charges, according to the 8-K.
The largest cash bucket is supply chain network optimization at $0.8 billion, followed by $0.6 billion for enterprise resource planning and technology integration, $0.4 billion for workforce optimization, $0.4 billion for advisory services and $0.3 billion for program management and other costs. Kimberly-Clark also expects to spend an estimated $1.4 billion in capital on the program over the same period.
In its closing announcement, the company reaffirmed its target of an estimated $2.1 billion in run-rate synergies. That figure combines $1.9 billion in cost synergies within three years of closing and $500 million in incremental profit from revenue synergies, partly offset by $300 million of reinvestment, within four years.
Board and pay changes
Former Kenvue directors Richard E. Allison Jr., Larry J. Merlo and Kirk L. Perry joined Kimberly-Clark's board, which now has 13 members. Mae C. Jemison, Christa S. Quarles and Jaime Ramirez stepped down to make room, the filing said.
The board's compensation committee also approved one-time, premium-priced stock option awards tied to the closing. Chairman and CEO Mike Hsu's award carries a grant value of $6.6 million, CFO Nelson Urdaneta's $2.15 million and Chief Strategy, Business Development and Administrative Officer Jeffrey Melucci's $1.8 million. The options will be granted Dec. 1 at an exercise price of the greater of $120 or 110% of that day's closing price, and they vest in full on Dec. 1, 2029.
By the numbers
- 0.14625 Kimberly-Clark shares plus $3.50 cash per Kenvue share
- 281,060,840 Kimberly-Clark shares issued or owed, a company estimate
- $3.1 billion in expected integration charges through 2029
- $1.4 billion in expected program capital spending
- $2.1 billion run-rate synergy target
- 13 directors on the combined board
Sources
- Kimberly-Clark Form 8-K on completion of Kenvue acquisition and integration program, filed Nov. 2, 2026 (accession 0001104659-26-120990)
- Kenvue Form 8-K on completion of merger with Kimberly-Clark, filed Nov. 2, 2026 (accession 0000950157-26-001147)
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