Today, Kenvue, a consumer health firm spun off from Johnson & Johnson in 2023, is reportedly exploring the sale of several skin health and beauty brands to streamline its portfolio. According to sources familiar with the matter, Kenvue is targeting smaller brands within its portfolio for divestiture, including Clean & Clear, Maui Moisture, Neostrata, Bebe (its German baby care brand), and Dr.Ci:Labo from Japan. Larger brands like Neutrogena and Aveeno are expected to remain part of the company’s core focus.
Goldman Sachs is advising Kenvue on this divestment process, although both Kenvue and Goldman Sachs declined to comment officially. The brands earmarked for sale collectively generate over $500 million in revenue, a significant but relatively small portion compared to Kenvue’s total revenue of $15.5 billion in 2024. The skin health and beauty unit, which houses these brands, has seen a decline in organic sales, contributing to Kenvue’s recent earnings challenges.
Facing pressure from activist investors like Starboard Value and others, Kenvue has been under scrutiny to enhance shareholder value, leading to strategic decisions such as this potential divestiture. The appointment of Amit Banati as Chief Financial Officer in May underscores Kenvue’s efforts to navigate these challenges effectively.
According to the latest financial report, Kenvue’s net sales for the first quarter of 2025 were $3.74 billion, down 3.9% compared to the same period last year. Net sales in the Skin Health and Beauty segment were $977 million, representing a year-over-year decline of 7.3%.
