Johnson & Johnson looks to offload remaining Kenvue stake in $3.75B deal

After Johnson & Johnson's consumer healthcare spinoff last year—and its subsequent reduction in holdings in the new company—the healthcare conglomerate is once again cutting its stake in Kenvue.

This time, though, J&J plans to exit Kenvue completely.

In a Monday securities filing, Kenvue revealed J&J's plan to offer 182.33 million shares of Kenvue in exchange for debt to be held by Goldman Sachs and J.P. Morgan Securities. The "debt-for-equity" exchange looks to be worth about $3.75 billion, based on Kenvue's Friday closing share price of $20.54.

The disclosure comes just about one year after Kenvue split off from Johnson & Johnson and started operating and trading as an independent consumer healthcare firm. The company markets popular products such as Tylenol, Neutrogena, Listerine, Aveeno and Zyrtec, generating $15.4 billion last year.

Kenvue employed 22,000 people at the end of last year, although it's currently engaging in a campaign to cut costs by eliminating hundreds of roles.

J&J's "debt-for-equity" exchange comes after the company last summer trimmed the majority of its Kenvue holdings through a share-exchange offer with its own investors. Under that arrangement, J&J offered shareholders a chance to capture some ownership in Kenvue by trading their J&J shares for Kenvue shares.

In the end, J&J said it offloaded 1.53 billion Kenvue shares in exchange for 191 million J&J shares.

J&J's latest offering covers its final remaining Kenvue shares, Reuters reports, which currently stands at 9.5% of the consumer healthcare company.

For Kenvue, the deal comes a week after the company said it's cutting 4% of its global workforce in a bid to save $350 million annually by 2026. The changes "will enable Kenvue to adjust its cost structure and ways of working to become more competitive," CFO Paul Ruh said in a statement.