Litigation is supposed to be a deterrent to dealmaking. For Kimberly-Clark Corp., it’s a spur. The diaper maker on Monday agreed to buy Tylenol producer Kenvue Inc. for $40 billion. This mammoth transaction is a gamble — but one with decent odds.
Kenvue is the consumer health care giant behind a plethora of well-known brands, including Neutrogena, Listerine and Aveeno. Spun out of Johnson & Johnson in 2023, it’s had a rocky ride and effectively put itself up for sale in July.
First, there was litigation around talc. Then the stock plunged in September after President Donald Trump linked autism to the ...