Johnson & Johnson Plans Kenvue Separation

Johnson & Johnson Plans Kenvue Separation

THE WHAT?  Johnson & Johnson announces plans for a strategic shift, intending to separate from Kenvue Inc. through a stock exchange offer. The move will enable shareholders to swap their Johnson & Johnson common shares for Kenvue’s, thus cementing Kenvue’s identity as a stand-alone entity post its Initial Public Offering (IPO) in May 2023.

THE DETAILS?  This separation will involve at least 80.1% of Kenvue’s shares and promises to be a tax-free transition for Johnson & Johnson’s shareholders. The decision, guided by a waiver from the joint lead book-running managers, allows for a hassle-free shift of Kenvue stocks. Shareholders can choose to exchange some, all, or none of their shares, with the provision of a 7% discount on Kenvue’s shares and a limit on the number of shares one can acquire.

THE WHY? According to Chairman and CEO Joaquin Duato, the split-off amplifies Johnson & Johnson’s commitment to innovating within the Pharmaceutical and MedTech spheres. He emphasizes that this move presents an ideal moment to distribute Kenvue shares and is confident it is the best way to increase shareholder value. The separation will help streamline Johnson & Johnson’s operational focus, enabling a concentrated approach to health and wellness solutions.

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