Tylenol maker Kenvue has said that Johnson & Johnson will sell its remaining 9.5% stake in the company, about a year after the healthcare conglomerate spun off and listed its consumer health business.
Based on Kenvue stock's last close, the offering of 182.3 million shares would be worth about $3.75 billion, according to Reuters calculation.
Kenvue's shares were down 1.2% in premarket trading. J&J shares were largely unchanged.
J&J finalised the biggest shake-up in its 137-year history to focus on its pharmaceutical and medical devices businesses. The company in May last year sold 172.8 million shares in Kenvue to raise $3.8 billion (€3.5 billion), and lowered its stake over the next three months.
J&J will exchange its holding to Goldman Sachs and J.P. Morgan Securities for its debt, Kenvue said. Goldman Sachs, J.P. Morgan and BofA Securities are the joint lead book-running managers.
The Band-Aid maker has focused on its 15 priority brands since the spinoff and earlier this month said it would cut 4% of its global workforce.
Kenvue's shares are down 4.6% so far this year, and nearly 8% from its listing price in May 2023.
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Last week, the company beat Wall Street estimates for first-quarter profit and said it would cut 4% of its global workforce amid efforts to expand its key brands.
The company said it targets pre-tax gross savings of about $350 million (€325.1 million) annually by 2026 through the cost-cutting programme, but will incur $275 million (€255.4 million) each in restructuring expenses in 2024 and 2025.
The self-care segment – which includes cough and cold medicine such as Tylenol and Benadryl – recorded $1.70 billion (€1.6 billion) in net sales, up 3.5% year-on-year.
