May 28, 2024

Tylenol brand pain reliever for sale at a pharmacy

Kevnue produces and sells top brands like Tylenol, Listerine, Neutrogena, Zyrtec, and Band-Aid, it generated $15.4 billion in revenue in 2023.
Image: Bloomberg / Contributor (Reuters)

Kenvue, the maker of popular consumer health brands like Tylenol and Listerine, announced Monday that Johnson & Johnson is selling its remaining stake in the company. The reversal comes about a year after the healthcare giant spun off its consumer health business into Kenvue.

Kenvue said on Monday that Johnson & Johnson plans to offer its remaining stake in Kenvue, over 189.3 million shares, to Goldman Sachs and J.P. Morgan in exchange for its debt. The debt-for-equity exchange is worth about $3.75 billion based on Kenvue’s closing share price of $20.54 on Friday. The shares will then be sold by the banks.

Johnson & Johnson first announced that it was splitting its consumer health business into a standalone company in 2022 to focus on its pharmaceutical and medical device divisions. In May of 2023, Kenvue started trading independently on the New York Stock Exchange, with Johnson & Johnson owning about 90% of its stock. Through the rest of the year, Johnson & Johnson offloaded its stake in the new company in waves, until it was left with just 9.5% of its shares.

After the deal, Johnson & Johnson will not owe any stock in Kenvue. Kevnue produces and sells top brands like Tylenol, Listerine, Neutrogena, Zyrtec, and Band-Aid. In 2023, the company generated $15.4 billion in revenue.

The company had about 22,000 employees by the end of 2023, according to its annual report. But it’s currently cutting 4% of its workforce, or about 900 roles, as part of a cost-reduction initiative meant to save the company $350 million.

Kenvue stock fell nearly 1.5% during Monday trading, following the news. Johnson & Johnson stock remained flat.

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