Johnson & Johnson looks to sell off stake in Kenvue

Johnson & Johnson is looking to offload any remaining stake in its consumer health spinoff, Kenvue.

In a May 13 filing with the U.S. Securities and Exchange Commission, Kenvue reported that its former parent company plans to offer 182.33 million shares in exchange for debt to be held by Goldman Sachs and J.P. Mogan Securities.

Based on Kenvue’s May 10 closing share price of $20.54, the deal would be worth about $3.75 billion.

J&J’s latest offering covers its remaining Kenvue shares, which currently stands at 9.5% of the company.

It comes about a year after Kenvue split off from the New Brunswick-based pharmaceutical and medical technologies giant to become a publicly traded company.

At the time of the separation, J&J trimmed the majority of its Kenvue holdings through a share-exchange offer with its own investors. Altogether, J&J said it accepted 191 million shares of its common stock in exchange for 1.53 billion shares of Kenvue common stock.

With a brand portfolio that includes Aveeno, Band-Aid, Listerine, Tylenol and Benadryl, Kenvue generated $15.44 billion in revenue last year. Temporarily located in Skillman, Kenvue recently broke ground on a global headquarters in Summit and expects to begin moving in next year. The 46-acre campus will house about 3,000 employees and include laboratory space to support research and development.

As of last year, Kenvue had approximately 22,200 employees with 5,400 located in North America. However, the company has been cutting jobs as part of larger restructuring effort.

In recent months, Kenvue eliminated 51 positions in Skillman. It also relocated its Neutrogena skin care brand from California to New Jersey, a move that impacted 84 employees.

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