Kenvue To Be Acquired by Kimberly-Clark To Create a Personal Care Giant

Kenvue is the world’s largest pure-play consumer health company by revenue, generating over $15 billion in annual sales. The former consumer segment of Johnson & Johnson spun off and went public in May 2023. We expect Kenvue to focus on its 15 priority brands (including Tylenol, Nicorette, Listerine, and Zyrtec) to drive future growth. We forecast the firm to spend roughly 3% of sales on research and development, on par with some of its wide-moat competitors, to launch innovative products.