Johnson & Johnson
(NYSE: JNJ)
announced today that it completed the separation of its Kenvue consumer health business.
Kenvue completed its IPO in May 2023. Johnson & Johnson last month announced its intention to split off at least 80.1% of the shares of Kenvue. The separation enables the company to sharpen its focus on its MedTech and Pharmaceutical businesses.
Today’s announcement confirmed the final results of an exchange offer to shareholders, which expired on Aug. 18. J&J accepted nearly 191 million shares of its common stock in exchange for more than 1.5 billion shares of Kenvue common stock.
According to a news release, the oversubscribed exchange offer means J&J only accepted a portion of shares validly tendered. Shareholders who owned fewer than 100 shares and validly tendered all shares were not subject to proration. J&J retains approximately 9.5% of the outstanding shares of Kenvue common stock.
“Johnson & Johnson’s exclusive focus on transformational Pharmaceutical and MedTech solutions enables us to innovate across the full spectrum of healthcare in ways that no other company can,” said Chair and CEO Joaquin Duato. “We are proud of the hard work that has led us to this historic milestone which brings significant value to shareholders and positions Johnson & Johnson to be even more agile, focused and competitive.”
Following the separation, today marks the first for Kenvue as an independent company. It expects to become the newest member of the S&P 500 prior to the opening of trading on Aug. 25.
“This is a historic moment for Kenvue and with a singular focus on delivering innovative care solutions to customers and consumers around the world, we’re excited to write the next chapter of consumer health,” said Thibaut Mongon, Kenvue CEO and director. “Thank you to our passionate teams who have prepared us for this significant milestone and welcome to our new shareholders. As the home to some of the world’s most beloved brands, we step into the future as a fully independent company from a position of strength and look forward to all that we will continue to achieve as a global leader in consumer health.”
