(Reuters) – The American hygiene products giant Kimberly-Clark announced on Monday the acquisition for more than 40 billion dollars (34.30 billion euros) of the manufacturer of dressings Kenvue, facing legal proceedings linked to its painkiller Tylenol (paracetamol) as well as criticism from the White House and fluctuating demand.

The transaction, which is expected to close in the second half of 2026, will be the largest buyout transaction ever in the U.S. consumer goods sector.

The buyout will give Kimberly-Clark access to Kenvue’s extensive portfolio of brands, from Listerine mouthwash to Band-Aid dressings and Aveeno and Neutrogena skin care lines. The new entity is expected to generate combined annual revenue of approximately $32 billion.

On the New York Stock Exchange, Kimberly-Clark shares fell 13% while Kenvue shares rose more than 15%.

Kimberly-Clark’s offer represents a 46% premium for Kenvue, a former subsidiary of Johnson & Johnson, shaken this year by the departure of its general manager and litigation linked to Tylenol and talcum powder products for babies.

In late September, US President Donald Trump spoke of a link between the use of Tylenol and the development of autism during pregnancy, a claim that many doctors dispute.

In this context, analysts and investors found the timing of the buyback surprising, given the persistent weakness in consumption and the risks of litigation.

“Most investors expected Kenvue to sell certain brands, not the entire company, given the risks associated with Tylenol and talc,” said James Harlow, at Novare Capital Management.

“But Kimberly-Clark likely saw long-term value in a portfolio of strong brands trading at a deep discount.”

(Written by Juveria Tabassum and Sriparna Roy; with contributions from Savyata Mishra; Elena Smirnova, edited by Blandine Hénault)

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