Dan Loeb's hedge fund, Third Point Capital, has acquired a stake in Kenvue, the $43 billion consumer health company behind brands like Tylenol and Neutrogena. According to Insider Monkey, Third Point is the third activist investor in recent months to target Kenvue, following Starboard Value and Toms Capital Investment Management.
The specific size of Third Point's stake has not been disclosed, but the move adds to the increasing pressure on Kenvue's management, with speculation around potential takeover or restructuring since its 2023 spin-off from Johnson & Johnson. Earlier this year, Kenvue appointed Starboard's CEO, Jeff Smith, to its board, alongside two other directors, in a strategic move to avoid a proxy clash. Toms Capital has also been advocating for a sale or breakup of the company.
Kenvue, despite flat net sales of $15.5 billion, faces competitive challenges in its skincare division from niche brands. Its stock has risen by 8% this year, yet remains near its initial listing price. Third Point shares a history of collaborative activist efforts with Toms, targeting companies like Colgate-Palmolive and Salesforce. Kenvue has indicated its commitment to sustainable growth and enhancing shareholder value.
