The spinoff of Johnson & Johnson’s consumer health business is the latest example of conglomerates looking to unlock value as investors flock to smaller, more nimble companies in a market environment more focused on profits than revenues.
The company, which will be known as Kenvue Inc., set the price range Monday for an initial public offering that values the business at almost $43 billion based on the top end of $20 to $23.
That valuation is in line with the estimate of Guggenheim analyst Vamil Divan, while special situations research firm The Edge Consulting Group sees room for investors to profit from the offering.
“We like the IPO,” which may offer an example for Bayer AG, Sanofi and other companies looking to split off their consumer-health businesses, said The Edge CEO Jim Osman