Kenvue, a listed company since its spin-off from Johnson & Johnson, is now under the spotlight of activist investors. Specialized in consumer healthcare with iconic brands such as Neutrogena, Tylenol and Aveeno, the company is the target of growing criticism concerning its stockmarket performance and strategic positioning.
A first round with Starboard Value
In October 2024, activist fund Starboard Value acquired a stake in Kenvue. Known for its campaigns on AutoDesk and Pfizer, the fund criticized the disappointing results of the health/beauty segment, despite its strong brands. It called for a review of pricing and marketing strategy, particularly regarding Neutrogena and Aveeno.
After several months of tension, a compromise was reached in early March 2025: three new directors joined the Kenvue board. But just when the company thought it had found stability, a new activist fund entered the fray.
TOMS Capital enters the fray
On March 24, TOMS Capital announces that it too will acquire a stake in Kenvue. According to Bloomberg, the fund is calling for a sale or separation of assets, calling into question the still recent independence of Kenvue, which was spun off from Johnson & Johnson in 2022.
The stake's amount has not been disclosed, although pressure is mounting. In response, Kenvue says it remains focused on long-term value creation: "Kenvue's Board of Directors and management team are committed to acting in the best interests of the company and all shareholders," a spokesperson says.
As activists move into the capital, Kenvue enters a new strategic phase where its decisions may well be dictated as much by the stock market as by its influential shareholders.
