Johnson & Johnson: Kenvue IPO Raises $4 Billion, Setting the Stage for Full Divestment Later in 2023

Johnson and Johnson raised close to $4 billion by selling almost 10% of its consumer business called Kenvue through an initial public offering. We expect J&J will divest the remaining Kenvue portion later in the year likely through a spinoff or split off. The implied valuation of close to $40 billion for Kenvue represents slightly lower valuation multiples than similar companies, but we don’t expect any major fair value estimate changes to J&J based on the initial partial sale of the unit.