Kenvue Merger Injects Fresh Capital

3 months ago

Christine Aino

"Uh so Ken Vue, ticker KVUE, this is the maker of Tylenol and their shares are whopping today, up 17% from the open. And that is because there is a deal that Kimberly Clark will be buying the company for $40 billion. And so the combination of both of these companies creates a 30 a company with $32 billion in revenue. And that makes them the second biggest seller of health and wellness products after Proctor and Gamble. So this is a monster deal. Can be holder shareholders will get $3.50 per share in cash. And so you know a lot of analysts weighing in. our own Bloomberg Intelligences Diana Gomez and Daria Lima saying that this really just reinforces the view that Keny was in need of big investment and you know if they were going to do that on their own that meant that they were going to have to sacrifice midterm profit but now we have Kimberly Clark swooping in and providing some fresh capital in here and hopefully helping them to really improve their sales."

The discussion focuses on KVUE's acquisition by Kimberly Clark for $40 billion, which includes a $3.50 per share cash offer. Analysts suggest that the merger provides necessary fresh capital for KVUE and potentially improves its sales outlook.

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