J&J to exit spinoff Kenvue with latest stake sale

Tylenol maker Kenvue KVUE said on Monday that Johnson & Johnson JNJ 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 finalized 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, 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 on Monday. 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.