Kenvue

Last updated

Kenvue Inc.
Company type Public
Industry Consumer products
Predecessor Johnson & Johnson (consumer health division)
FoundedFebruary 23, 2022;2 years ago (2022-02-23)
Headquarters
Skillman, New Jersey
,
U.S.
Area served
Worldwide
Key people
Products
RevenueIncrease2.svg US$15.44 billion (2023)
Decrease2.svgUS$2.512 billion (2023)
Decrease2.svgUS$1.664 billion (2023)
Total assets Increase2.svgUS$27.85 billion (2023)
Total equity Decrease2.svgUS$11.21 billion (2023)
Number of employees
c. 22,000 (2023)
Subsidiaries McNeil Consumer Healthcare
Website kenvue.com
Footnotes /references
[1]

Kenvue Inc. is an American consumer health company. Formerly the Consumer Healthcare division of Johnson & Johnson, [2] Kenvue is the proprietor of well-known brands such as Aveeno, [3] Band-Aid, [4] Benadryl, Zyrtec, [5] Johnson's, [6] Listerine, [7] Mylanta, Neutrogena, [3] Trosyd, Tylenol, [7] and Visine.

Contents

Kenvue is headquartered in the Skillman section of Montgomery Township, New Jersey, with plans to relocate its global headquarters to Summit, New Jersey. [8] Before the spin-off, Johnson & Johnson's consumer health division was based in Skillman, even as its pharmaceutical division and medical technologies division, as well as the overall company headquarters, were located in nearby New Brunswick, New Jersey.

History

Spin-off and IPO

On November 12, 2021, Johnson & Johnson announced that it would spin off its consumer health division as a separate company, in an effort to streamline operations. [2] The new company would assume well-known consumer brands such as Aveeno, Band-Aid, Neutrogena, and Tylenol, while Johnson & Johnson would focus on its pharmaceutical and medical device sectors. [2] CEO Alex Gorsky said that the split was in response to "a significant evolution in these markets, particularly on the consumer side", [2] and would enable faster expansion for both businesses. [9]

Other pharmaceutical companies that made similar moves around this time include Merck & Co., which sold its consumer health business to Bayer in 2014, [2] and Pfizer, which merged its consumer health division with that of GSK plc in 2019. [lower-alpha 1] [9] The November 2021 announcement also occurred the same week that General Electric and Toshiba each announced that they would split into multiple entities. [9]

The New York Times noted that Johnson & Johnson had long benefited from a "halo effect", namely a lingering positive connotation ascribed to the company name stemming from its popular household brands such as Johnson's Baby, but that its reputation had declined as a result of various controversies in recent years; [9] Johnson & Johnson was the subject of litigation over its role in the opioid epidemic in the United States, as well as over allegations that its talc-based baby powder contained asbestos and caused ovarian cancer for some consumers. [9] The spin-off was seen as an effort to move past these controversies and assuage shareholder apprehension. [9]

The Times also pointed out that, while the consumer health business operates many well-known brands, it was not nearly as lucrative as the pharmaceutical and medical device sectors (taking $15 billion in revenue in 2021 compared to the latter's combined $77 billion), commenting that the popularity of the consumer brands "does not do much to advance Johnson & Johnson's medical businesses, which are far more important to the company's finances". [9]

On February 23, 2022, the consumer health business was registered as a corporation in Delaware, [14] under the provisional name JNTL, Inc. [15] On September 28, 2022, Johnson & Johnson unveiled that the new consumer health company would be called Kenvue. They said that the name was a combination of "ken", a Scottish English word for 'knowledge', and "vue", a homophone of "view" intended to evoke the concept of 'sight'. [16]

Kenvue filed with the U.S. Securities and Exchange Commission for an initial public offering (IPO) in 2023. [17] Kenvue issued about 1.89 billion shares, of which about 170 million were offered at the IPO. [14] This meant that Johnson & Johnson retained about 90.9% of the shares after the IPO. [18] [19]

The IPO took place on May 4, 2023. [20] Shares of Kenvue were priced at $22, [21] [22] [23] implying an initial equity valuation for Kenvue of about $41 billion, and traded at $26.90 at the end of the first trading day. [24] Raising about $3.8 billion in capital for Kenvue, it was the largest IPO since the IPO of Rivian on November 10, 2021. [25] The IPO was seen as a useful gauge of broader investor confidence. [24] Observers cited rising interest rates and predictions of a looming recession to explain the slowdown in the U.S. IPO market since 2022, and said that Kenvue was an "idiosyncratic" IPO candidate as it was well-established, with an extensive track record of profitable years under its parent company. [24]

On July 24, 2023, Johnson & Johnson launched an exchange offer to split-off Kenvue. [26] [27] Kenvue was added to the S&P 500 Dividend Aristocrats index in August 2023. [28]

Independent operation

The first CEO of Kenvue is Thibaut Mongon. [16] [29] [6]

Brands

Consumer brands operated by Kenvue include:

Controversy

A securities class action was initiated in the United States District Court of New Jersey by law firm Kessler Topaz Meltzer & Check, LLP on 9 October 2023. The action alleged that Kenvue was in violation of federal securities laws - having made fraudulent and misleading statements, including omissions, about the company's internal control and financial reporting. [30] [31] This was specifically in relation to Kenvue's Registration Statement which is said not to have disclosed information pertaining to possible risks and potential litigation regarding phenylephrine, its uses and efficacy. [32] [33] As a result, investors were informed of the lawsuit and noted significant losses. [30] [31] Kenvue shares closed at 9.6% below the IPO price, at $19.87. [32]

Kenvue total number of employees in 2022 was 22,200, a 11% increase from 2021.

    Notes

    1. ↑ Pfizer had previously sold its consumer health division (which had included in its portfolio such brands as Listerine, Benadryl, Visine, Mylanta, Lubriderm, Nicorette, Sudafed, [10] Rogaine, Rolaids, and Zantac) [11] to Johnson & Johnson in 2006, [11] but re-entered the consumer health industry when it acquired Wyeth (whose consumer health division had included in its portfolio such brands as Advil, Centrum, ChapStick, Dimetapp, and Robitussin) [10] in 2009. [12] [13]

    Related Research Articles

    <span class="mw-page-title-main">Listerine</span> Brand of mouthwash

    Listerine is a brand of antiseptic mouthwash that is promoted with the slogan "Kills germs that cause bad breath". Named after Joseph Lister, who pioneered antiseptic surgery at the Glasgow Royal Infirmary in Scotland, Listerine was developed in 1879 by Joseph Lawrence, a chemist in St. Louis, Missouri.

    <span class="mw-page-title-main">Pfizer</span> American multinational pharmaceutical and biotechnology corporation

    Pfizer Inc. is an American multinational pharmaceutical and biotechnology corporation headquartered at The Spiral in Manhattan, New York City. The company was established in 1849 in New York by two German entrepreneurs, Charles Pfizer (1824–1906) and his cousin Charles F. Erhart (1821–1891).

    <span class="mw-page-title-main">Tylenol (brand)</span> Medication

    Tylenol is a brand of medication, advertised for reducing pain, reducing fever, and relieving the symptoms of allergies, cold, cough, headache, and influenza. The active ingredient of its original flagship product is paracetamol, an analgesic and antipyretic. Like the words paracetamol and acetaminophen, the brand name Tylenol is derived from a chemical name for the compound, N-acetyl-para-aminophenol (APAP). The brand name is owned by McNeil Consumer Healthcare, a subsidiary of Kenvue.

    <span class="mw-page-title-main">Johnson & Johnson</span> American multinational pharmaceutical and consumer goods corporation

    Johnson & Johnson (J&J) is an American multinational, pharmaceutical, and medical technologies corporation headquartered in New Brunswick, New Jersey, and publicly traded on the New York Stock Exchange. Its common stock is a component of the Dow Jones Industrial Average, and the company is ranked No. 40 on the 2023 Fortune 500 list of the largest United States corporations. In 2023, the company was ranked 40th in the Forbes Global 2000. Johnson & Johnson has a global workforce of approximately 130,000 employees who are led by the company's current chairman and chief executive officer, Joaquin Duato.

    <span class="mw-page-title-main">Genworth Financial</span> American insurance company

    Genworth Financial, headquartered in Richmond, Virginia, provides life insurance, long-term care insurance, mortgage insurance, and annuities.

    <span class="mw-page-title-main">Neutrogena</span> American cosmetics company

    Neutrogena Corporation, trading as Neutrogena, is an American company that produces cosmetics, skin care and hair care and owned by parent company Kenvue and is headquartered in Los Angeles, California. According to product advertising at their website, Neutrogena products are distributed in more than 70 countries.

    <span class="mw-page-title-main">Ally Financial</span> American financial services company

    Ally Financial Inc. is a bank holding company organized in Delaware and headquartered at Ally Detroit Center in Detroit, Michigan. The company provides financial services including car finance, online banking via a direct bank, corporate lending, vehicle insurance, mortgage loans, and other related financing services such as installment sale and lease agreements.

    Bausch Health Companies Inc. is an American-Canadian multinational specialty pharmaceutical company based in Laval, Quebec, Canada. It develops, manufactures and markets pharmaceutical products and branded generic drugs, primarily for skin diseases, gastrointestinal disorders, eye health and neurology. Bausch Health owns Bausch & Lomb, a supplier of eye health products. Bausch Health's business model is primarily focused on acquiring small pharmaceutical companies and then sharply increasing the prices of the drugs these companies sell.

    Kaye Scholer was a law firm founded in 1917 by Benjamin Kaye and Jacob Scholer. The firm had more than 450 attorneys in nine offices located in the cities of Chicago, Frankfurt, London, Los Angeles, New York City (headquarters), Shanghai, Palo Alto, Washington, D.C., and West Palm Beach.

    Aveeno is an American brand of skin care and hair care products owned by American consumer health company Kenvue.

    McNeil Consumer Healthcare is an American medicals products company belonging to Kenvue consumer health group. It primarily sells fast-moving consumer goods such as over-the-counter drugs.

    The 2010 Johnson & Johnson children's product recall involved 43 over-the-counter children's medicines announced by McNeil Consumer Healthcare, a subsidiary of Johnson & Johnson, on April 30, 2010. Medications in the recall included liquid versions of Tylenol, Tylenol Plus, Motrin, Zyrtec, and Benadryl. The products were recalled after it was determined that they "may not fully meet the required manufacturing specifications". The recall affected at least 12 countries.

    <span class="mw-page-title-main">Wyeth</span> American pharmaceutical company

    Wyeth was a pharmaceutical company until it was purchased by Pfizer in 2009. The company was founded in Philadelphia, Pennsylvania, in 1860 as John Wyeth and Brother. Its headquarters moved to Collegeville, Pennsylvania, and Madison, New Jersey, before its headquarters were consolidated with Pfizer's in New York City after the 2009 merger.

    <span class="mw-page-title-main">Continental Resources</span> US petroleum and natural gas company

    Continental Resources, Inc. is a petroleum and natural gas exploration and production company headquartered in Oklahoma City. The company was founded by Harold Hamm in 1967 at the age of 21 as Shelly Dean Oil Company, originally named for Hamm's two daughters. In 1990, Shelly Dean re-branded itself as Continental Resources. It primarily used hydraulic fracturing and directional drilling to produce from low permeability formations.

    <span class="mw-page-title-main">Zoetis</span> American animal health company

    Zoetis Inc. (/zō-EH-tis/) is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock. The company was a subsidiary of Pfizer, the world's largest drug maker, but with Pfizer's spinoff of its 83% interest in the firm it is now a completely independent company. The company directly markets its products in approximately 45 countries, and sells them in more than 100 countries. Operations outside the United States accounted for 50% of the total revenue. Contemporaneous with the spinoff in June 2013 S&P Dow Jones Indices announced that Zoetis would replace First Horizon National Corporation in the S&P 500 stock market index.

    <span class="mw-page-title-main">Moderna</span> American biotechnology company

    Moderna, Inc. is a pharmaceutical and biotechnology company based in Cambridge, Massachusetts, that focuses on RNA therapeutics, primarily mRNA vaccines. These vaccines use a copy of a molecule called messenger RNA (mRNA) to carry instructions for proteins to produce an immune response. The company's name is derived from the terms "modified", "RNA", and "modern".

    Authentic Brands Group LLC (ABG) is an American brand management company headquartered in New York City. Its holdings include various apparel, athletics, and entertainment brands, which it partners with other companies to license and merchandise. ABG owns more than 50 consumer brands, as well as the likeness rights or estates of celebrities, including Muhammad Ali, Elvis Presley, and Marilyn Monroe.

    <span class="mw-page-title-main">The Habit Burger Grill</span> American fast casual restaurant chain

    The Habit Burger Grill is a California-based fast casual restaurant chain that specializes in chargrilled hamburgers. The company also sells other typical fast-casual fare. It was founded in 1969 at Santa Barbara, California, and its headquarters are in Irvine, California.

    References

    1. ↑ "Kenvue Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. March 1, 2024.
    2. 1 2 3 4 5 6 7 8 Chapman, Michelle; Murphy, Tom (November 12, 2021). "Johnson & Johnson to split into two, aim for faster growth". Associated Press . Retrieved May 7, 2023.
    3. 1 2 Kenvue Inc. (July 24, 2023). "Kenvue To File Form S-4 Registration Statement in Connection with Johnson & Johnson Exchange Offer Announcement". Business Wire (English).
    4. ↑ "Kenvue Showcases Tylenol Precise Cream, First Launch Since IPO". MMR. 40 (10): 18. September 11, 2023.
    5. ↑ Altman, Michael; Atasu, Atalay; Özkaya, Evren (October 18, 2023). "How Kenvue De-Risked Its Supply Chain". Harvard Business Review Digital Articles: 1–8.
    6. 1 2 Kenvue Inc. (April 5, 2023). "Kenvue to Begin Trading on the New York Stock Exchange". Business Wire (English).
    7. 1 2 Lipschultz, Bailey (June 6, 2023). "Tylenol Maker Kenvue Goes From Sure Bet to Question Mark After Year's Biggest IPO". Bloomberg.com: N.PAG.
    8. ↑ "J&J Spinoff Kenvue Locating HQ in Summit", New Jersey Business Magazine, May 1, 2023. Accessed August 29, 2023. "Kenvue, the multibillion-dollar spinoff of Johnson & Johnson’s consumer health business, has chosen to locate its global headquarters in Summit.... Kenvue's product portfolio includes well known products Tylenol, Neutrogena, Listerine and Band-Aid, and the spinoff marks the largest restructuring in Johnson & Johnson's 135-year history.... Currently located in Skillman, Kenvue will slowly make a transition to the Summit East campus."
    9. 1 2 3 4 5 6 7 8 Robbins, Rebecca; de la Merced, Michael J. (November 12, 2021). "Johnson & Johnson, iconic company under pressure, plans to split in two". The New York Times . Retrieved May 7, 2023.
    10. 1 2 3 Sorkin, Andrew Ross (January 23, 2009). "Pfizer said to be closing in on deal for Wyeth". The New York Times . Retrieved May 8, 2023.
    11. 1 2 3 4 5 Saul, Stephanie (June 27, 2006). "Johnson & Johnson buys Pfizer unit for $16.6 billion". The New York Times . Retrieved May 8, 2023.
    12. ↑ Hall, Jessica; Krauskopf, Lewis (January 25, 2009). "Pfizer to buy Wyeth for $68 billion". Reuters . Retrieved May 8, 2023.
    13. ↑ Sorkin, Andrew Ross; Wilson, Duff (January 26, 2009). "Pfizer to acquire Wyeth for $68 billion". The New York Times . Retrieved May 8, 2023.
    14. 1 2 "Form S-1, Amendment No. 4 (Kenvue, Inc.)". U.S. Securities and Exchange Commission . April 24, 2023. Archived from the original on May 7, 2023. Retrieved May 8, 2023. We were incorporated in Delaware on February 23, 2022 in connection with the Separation and were formed to ultimately hold, directly or indirectly, and conduct certain operational activities in anticipation of the planned separation of, the Consumer Health Business. Prior to the completion of this offering, we are a wholly owned subsidiary of Johnson & Johnson and all of our outstanding shares of common stock are owned by Johnson & Johnson. Our principal executive offices are located [in] Skillman, NJ 08558.
    15. ↑ "Form S-1 (JNTL, Inc.)". U.S. Securities and Exchange Commission . August 30, 2022. Archived from the original on May 8, 2023. Retrieved May 8, 2023.
    16. 1 2 3 4 5 6 Meyersohn, Nathaniel (September 29, 2022). "Band-Aids and Tylenol will have a new name on their packages". CNN Business . Retrieved May 7, 2023.
    17. ↑ Satija, Bhanvi (January 4, 2023). "J&J's consumer health unit Kenvue files for IPO, moving closer to spin-off". Reuters . Retrieved May 7, 2023.
    18. ↑ "J&J's Kenvue consumer health business prepares for stock IPO". Associated Press . April 25, 2023. Retrieved May 7, 2023.
    19. 1 2 3 4 5 6 Nathan-Kazis, Josh. "Kenvue Stock Jumps in IPO of Former J&J Consumer-Health Business". Barron's. Dow Jones & Company. Retrieved May 16, 2023.(subscription required)
    20. ↑ Singer, Drew; Patton, Leslie (May 4, 2023). "Maker of Tylenol, Band-Aid climbs in debut after biggest U.S. IPO since 2021". Bloomberg News . Retrieved May 7, 2023.
    21. ↑ Saini, Manya; Satija, Bhanvi (May 4, 2023). "J&J's Kenvue eyes $47 billion valuation in biggest U.S. IPO since 2021". Reuters . Retrieved May 7, 2023.
    22. ↑ Kenvue Inc. (August 5, 2023). "Kenvue Announces Closing of Initial Public Offering". Business Wire (English).
    23. ↑ Baker, Liana (May 3, 2023). "J&J's Kenvue Prices IPO at $22 Per Share". Bloomberg.com: N.PAG.
    24. 1 2 3 4 Megaw, Nicholas; Smyth, Jamie (May 4, 2023). "Johnson & Johnson consumer arm's shares jump in biggest U.S. IPO since 2021". Financial Times . Retrieved May 7, 2023.
    25. ↑ Primack, Dan (May 4, 2023). "J&J's Kenvue rallies out of the gate following IPO". Axios . Retrieved May 7, 2023.
    26. ↑ "johnson & Johnson Launches exchange off for the Separation of Kenvue".
    27. ↑ "J&J offers exchange for Kenvue shares". Dow Theory Forecasts. 79 (33): 1. August 14, 2023.
    28. ↑ "Constituent Change Announced for the S&P 500 Dividend Aristocrats Index" (PDF). S&P Dow Jones Indices . August 22, 2023.
    29. 1 2 Constantino, Annika Kim (May 5, 2023). "Kenvue CEO looks to brand, product innovation to drive growth after IPO". CNBC . Retrieved May 7, 2023.
    30. 1 2 PR Newswire (October 29, 2023). "Kessler Topaz Meltzer & Check, LLP Announces Investor Securities Fraud Class Action Lawsuit Filed Against Kenvue Inc: KESSLER-TOPAZ-lawsuit". PR Newswire US.
    31. 1 2 PR Newswire (November 7, 2023). "Kessler Topaz Meltzer & Check, LLP Reminds Kenvue Inc. Investors of Important Deadline in Securities Fraud Class Action Lawsuit and Encourages Investors with Substantial Losses to Contact the Firm: KTMC-investigation". PR Newswire US.
    32. 1 2 PR Newswire (November 3, 2023). "KENVUE SHAREHOLDER ALERT: Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Kenvue To Contact Him Directly To Discuss Their Options: FARUQI&FARUQI-KVUE". PR Newswire US.
    33. ↑ PR Newswire (October 30, 2023). "SHAREHOLDER ALERT: The Law Offices of Vincent Wong Remind Kenvue Investors of a Lead Plaintiff Deadline of December 8, 2023: VINCENT-WONG-lawsuit". PR Newswire US.
    This page is based on this Wikipedia article
    Text is available under the CC BY-SA 4.0 license; additional terms may apply.
    Images, videos and audio are available under their respective licenses.