In a landmark transaction, Kimberly-Clark has announced its acquisition of Kenvue, renowned for producing Tylenol, in a deal valued at approximately $48.7 billion. This strategic move aims to forge a colossal entity in the consumer health goods sector.

Following the merger, Kimberly-Clark shareholders will hold a controlling interest, owning around 54% of the newly formed company, while Kenvue shareholders will maintain a significant 46% stake. This merger will bring together a wide range of household brands, uniting Kenvue’s popular products like Listerine mouthwash and Band-Aid bandages with Kimberly-Clark’s well-known offerings such as Cottonelle toilet paper, Huggies diapers, and Kleenex tissues. The combined company is projected to generate an impressive $32 billion in annual revenue.

Although Kenvue has not been long on its own, having separated from Johnson & Johnson only two years ago, it has swiftly made its mark. Johnson & Johnson had initially announced in late 2021 that it intended to spin off its consumer health division, distancing it from its pharmaceutical and medical device arms.

The agreement unveiled on Monday stands as one of the most substantial business acquisitions of the year, highlighting its significance in the corporate world.

Kenvue recently found itself in the limelight when Health Secretary Robert F. Kennedy, Jr. revisited the controversial and unsubstantiated claim linking Tylenol to autism. He further asserted that detractors of this theory were driven by animosity toward former President Donald Trump, bringing additional attention to the company.

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%.