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Justin Sullivan
Johnson & Johnson’s (NYSE:JNJ) consumer health division, to be called Kenvue, has filed to raise up to $100M through an initial public offering.
Kenvue didn’t specify in its filing the number and price of the shares to be offered, but indicated in an attached filing fee schedule that it was looking to raise up to $100M, a number that is likely a placeholder and subject to change.
J&J will receive net proceeds from the deal in exchange for transferring all of the assets and liabilities of its consumer health business. J&J will also receive proceeds from certain debt financing transactions involving the division.
Kenvue hopes to list its shares on NYSE under the symbol KVUE. Goldman Sachs and J.P. Morgan are serving as lead bookrunners.
Based in New Jersey, J&J’s consumer health division sells some of the world’s best known personal care products and over-the-counter medications, including Neutrogena, Aveeno, Tylenol, Zyrtec, Band-Aids and Listerine.
Kenvue said that J&J will control at least 80% of the voting power of its common shares after the spinout. However, J&J also intends to distribute at least part of that equity to its shareholders, which may result in Kenvue no longer being considered a controlled company under NYSE’s corporate governance rules.
J&J’s consumer health division has been profitable. For the nine-month period ended Oct. 2, Kenvue reported net income of $1.72B on revenue of $11.18B.
J&J announced plans to spin out its consumer health business as a separate, publicly traded entity in November 2021.
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Image and article originally from seekingalpha.com. Read the original article here.