SKILLMAN, N.J. - Kenvue Inc . (NYSE: NYSE:KVUE), a leading consumer health company, announced the initiation of a secondary underwritten public offering of 182,329,550 shares of its common stock today. Notably, Kenvue itself will not be selling any shares nor receiving proceeds from this offering.
In a strategic move, Johnson & Johnson (NYSE: JNJ) is set to exchange an equivalent number of Kenvue's common stock shares for debts currently expected to be held by Goldman Sachs (NYSE:GS) & Co. LLC and J.P. Morgan, referred to as the Selling Shareholders. Following this exchange and the subsequent offering, Johnson & Johnson will have divested its entire stake in Kenvue.
The underwriting of the offering will be jointly managed by Goldman Sachs & Co. LLC, J.P. Morgan, and BofA Securities. The offering is contingent on the effectiveness of a registration statement filed with the Securities and Exchange Commission, and the sale of shares will proceed only through a prospectus.
Kenvue, recognized as the world's largest pure-play consumer health company by revenue, is known for its portfolio of science-backed brands such as Aveeno®, BAND-AID® Brand, Johnson's®, Listerine®, Neutrogena®, and Tylenol®. The company emphasizes the importance of everyday care and aims to maintain consumer trust and presence in homes globally.
The information for this article is based on a press release statement from Kenvue Inc.
InvestingPro Insights
As Kenvue Inc. (NYSE: KVUE) navigates through its secondary underwritten public offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Kenvue boasts a robust gross profit margin of 56.57% for the last twelve months as of Q1 2024, which underscores the company's strong profitability in its operations. This aligns with an InvestingPro Tip highlighting Kenvue's impressive gross profit margins, a key indicator of the company's efficiency in managing production costs and pricing strategies.
Furthermore, Kenvue's market capitalization stands at $39.33 billion, reflecting its substantial presence in the consumer health sector. The company operates with a moderate level of debt, which may provide a stable financial structure for future growth and resilience. Additionally, Kenvue has experienced a significant return over the last week, with a 1-week price total return of 8.79%, indicating a positive short-term investor sentiment.
Investors considering Kenvue's stock should note that InvestingPro Tips also reveal that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. For those seeking more comprehensive analysis and insights, InvestingPro offers additional tips on Kenvue, which can be accessed at https://www.investing.com/pro/KVUE. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the numerous other tips available to inform your investment decisions.
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