Johnson & Johnson's
The report said the spinoff is set to begin a roadshow to pritch shares to prospective investors as early as Monday, according to people familiar with the matter, with the goal of raise $3.5 billion or more. At that valuation, the IPO will be one of the biggest of the year by far as 2023's market has been mostly quiet due to high speculation of an impending recession on the horizon.
Kenvue's business includes many of Johnson & Johnson's recognizable over-the-counter personal care and health products such-as pain relief drug Tylenol, bandage and wound-card brand Band-Aid, various baby-care products like Johnson's Baby Shampoo, and skin-care brands like Aveeno and Neutrogena.
Kenvue also includes the company's baby powder, which has faced thousands of class action lawsuits alleging the talc used in the baby powder and other talc products caused cancer. The company has since switched to cornstarch-based powder in the United States and Canada for its previous talc products, and plans to expand globally.
Johnson & Johnson will retain all talc-related liabilities for products sold in the U.S. and Canada, while Kenvue will be responsible for any claims made elsewhere, according to the IPO filing.
The consumer personal-care business accounted for 15.7% of Johnson & Johnson's total global sales last year at $14.95 billion. Johnson & Johnson will retain its larger Janssen Pharmaceuticals and other medical business units after the separation of the Kenvue business.
Kenvue is expected to compete with other consumer-product companies including Procter & Gamble
Johnson & Johnson previously announced the spinoff due to in 2021, saying that the consumer unit had grown apart from its other units. The separation is expected by mid- to late-2023. The company will retain majority ownership of Kenvue post-IPO, and has plans to reduce its stake later this year.
Kenvue's stock is set to trade on the New York Stock Exchange under the ticker KVUE. The lead underwriters on the IPO are Goldman Sachs
