Johnson & Johnson’s consumer health business, Kenvue, is set to go public later this year with a valuation of $40 billion. The company aims to raise $3.5 billion or more in its initial public offering, making it the biggest share sale of a quiet IPO year. According to sources familiar with the matter, Kenvue plans to meet with prospective investors as early as Monday.
J&J spokesperson Tesia Williams declined to comment on the report by The Wall Street Journal, which broke the news of Kenvue’s valuation. J&J announced its plans to spin off its consumer health business in late 2021, with Kenvue expected to become a standalone company by mid- to late 2023. The consumer staples giant will retain majority ownership of Kenvue, with plans to trim the rest of its stake later in the year.
Kenvue’s stock will trade on the New York Stock Exchange under the ticker KVUE. The consumer health business includes Band-Aid bandages, skin care products under the brands Neutrogena and Aveeno, pain relief drug Tylenol, and J&J’s baby powder. However, J&J still faces thousands of allegations that its baby powder and other talc products caused cancer.
A federal bankruptcy judge recently halted nearly 40,000 talc lawsuits through mid-June, part of J&J’s second attempt to settle talc claims in bankruptcy proceedings. The temporary hold will give J&J time to try to win court approval of its proposed $8.9 billion settlement with talc plaintiffs. Kenvue will take on talc-related liabilities outside of the U.S. and Canada, according to its IPO filing.
Despite the ongoing talc lawsuits, Kenvue’s IPO is expected to be a major success, with investors eager to invest in the consumer health business. With a valuation of $40 billion and plans to raise $3.5 billion or more, Kenvue is set to make history with the biggest IPO of the year.
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