Kimberly-Clark is set to acquire Kenvue, the manufacturer of Tylenol, in a significant transaction valued at approximately $48.7 billion. This deal, involving both cash and stock, will result in the formation of a formidable entity in the consumer health goods industry.

Once finalized, shareholders of Kimberly-Clark will hold around 54% of the new conglomerate, while Kenvue’s shareholders will possess about 46%. This strategic merger will amalgamate a range of well-known household brands, uniting Kenvue’s Listerine mouthwash and Band-Aid products with Kimberly-Clark’s Cottonelle toilet paper, Huggies diapers, and Kleenex tissues under one corporate umbrella.

The newly combined company is expected to generate an impressive annual revenue of approximately $32 billion. This move marks a notable chapter for Kenvue, which has only been an independent entity for a short span since its separation from Johnson & Johnson two years ago. Johnson & Johnson had initially declared its intention to split its consumer health division from its pharmaceutical and medical device segments back in late 2021.

Announced on Monday, this acquisition stands as one of the largest corporate takeovers this year, reflecting a significant consolidation in the consumer health sector.

The deal announced Monday is among the largest corporate takeovers of the year.

Kenvue was thrust into the national spotlight last month when Health Secretary Robert F. Kennedy, Jr. reasserted the unproven link between the pain reliever Tylenol and autism, and suggested people who opposed the theory were motivated by hatred for President Donald Trump.

During a meeting with Trump and the Cabinet, Kennedy reiterated the connection, even while noting there was no medical proof to substantiate the claim.

In July Kenvue, announced that CEO Thibaut Mongon was leaving in the midst of a strategic review with the company under mounting pressure from activist investors. Board member Kirk Perry is serving as interim CEO.

“We will serve billions of consumers across every stage of life,” Kimberly-Clark Chairman and CEO Mike Hsu said in a statement.

Hsu will be chairman and CEO of the combined company. Three members of the Kenvue’s board will join Kimberly-Clark’s board at closing. The combined company will keep Kimberly-Clark’s headquarters in Irving, Texas and continue to have a significant presence in Kenvue’s locations.

The deal is expected to close in the second half of next year. It still needs approval from shareholders of both both companies.

Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing. That amounts to $21.01 per share, based on the closing price of Kimberly-Clark shares on Friday.

Kimberly-Clark and Kenvue said that they identified about $1.9 billion in cost savings that are expected in the first three years after the transaction’s closing.

Shares of Kimberly-Clark slipped more than 15% before the market open, while Kenvue’s stock jumped more than 20%.