Kimberly-Clark Tanks on Deal to Buy Tylenol Maker Kenvue (1)

Kimberly-Clark Corp. shares fell the most in a quarter century after agreeing to buy Kenvue Inc., whose biggest product, Tylenol, is in the crosshairs of the White House.

Kimberly-Clark said it would buy Kenvue for roughly $40 billion, snapping up the embattled company’s storied brands in a gamble that would vault the Kleenex owner into consumer health’s top tier. Kimberly-Clark agreed to pay a total consideration of $21.01 per share, a 46% premium to Kenvue’s closing price on Friday.

The deal values Kenvue at $48.7 billion on an enterprise basis, the companies said.

The transaction exposes Kimberly-Clark to legal ...