Johnson & Johnson Announces Stock Exchange Offer, Anticipates Kenvue Inc. Separation

NEW BRUNSWICK, N.J., July 24, 2023 (VSNewsNetwork.com) - Health conglomerate Johnson & Johnson (NYSE: JNJ) has disclosed its intention to separate from its subsidiary Kenvue Inc. (NYSE: KVUE) by offering an exchange of shares. Johnson & Johnson shareholders will have the chance to trade all, some, or none of their Johnson & Johnson common stock for shares in Kenvue, the company's former Consumer Health arm which undertook an IPO in May 2023. This proposed move is expected to be tax-free for U.S. Federal income tax purposes.

Joaquin Duato, Chairman and CEO of Johnson & Johnson, addressed the decision, saying, "The separation of Kenvue further sharpens Johnson & Johnson’s focus on transformational innovation specifically in Pharmaceutical and MedTech. We believe now is the right time to distribute our Kenvue shares, and we are confident that a split-off is the appropriate path forward to bring value to our shareholders."

Johnson & Johnson aims to distribute at least 80.1% of the shares of Kenvue via the exchange offer. The completion of the exchange offer is contingent on certain conditions including at least 460,149,135 shares of Kenvue common stock being distributed and an opinion of counsel confirming the tax-free nature of the exchange offer for Johnson & Johnson and its participating shareholders.

For more information about the exchange offer, visit www.JNJSeparation.com.

Source: Johnson & Johnson via Business Wire