J&J Sells Remaining Stake in Spinoff Kenvue


Johnson & Johnson (NYSE:JNJ), known for its pharmaceutical and medical devices businesses, announced plans to sell its final 9.5% stake in Kenvue, marking its complete exit from the consumer health company it spun off last year. The sale involves 182.3 million shares of Kenvue, valued at approximately $3.75 billion based on the latest closing price, as calculated by Reuters.

This move comes as part of Johnson & Johnson’s strategic refocus, which has been described as the largest organizational transformation in its 137-year history. The company aims to concentrate more on its core pharmaceuticals and medical devices sectors. Previously, in May of the preceding year, Johnson & Johnson had sold 172.8 million Kenvue shares to generate $3.8 billion, progressively reducing its stake over the subsequent months.

For this transaction, Johnson & Johnson will transfer its holdings to Goldman Sachs and J.P. Morgan Securities in exchange for clearing its debt. These firms, along with BofA Securities, are serving as the joint lead book-running managers for the share offering.

Despite these strategic shifts, Kenvue’s stock has experienced a downturn, dropping 1.2% in premarket trading and declining 4.6% year-to-date, with a nearly 8% fall from its initial listing price in May 2023. Meanwhile, Johnson & Johnson’s stock remained mostly stable following the announcement.

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