Tags: Kimberly-Clark | Spin-Off | Health | Care

Kimberly-Clark May Spin Off Health Care Business

Thursday, 14 Nov 2013 05:27 PM

Kimberly-Clark Corp, the maker of Kleenex tissues, said its board authorized a potential spin-off of its health care business, sending its shares higher in extended trading Thursday

The company said the move would enable it to focus on its consumer and K-C professional brands.

Kimberly-Clark said Robert Abernathy, currently group president for Europe, global nonwovens and continous improvement and sustainability, will become chief executive of the new health care company if its spun off.

The company said it expects to make a final recommendation regarding in the next several months. If the spin-off is approved, the transaction would be completed by the end of the third quarter of 2014.

Morgan Stanley has been retained by the company in pursuit of the spin-off.

Kimberly-Clark's health care business sells surgical and infection prevention products for the operating room, as well as medical devices. It posted net sales of $1.6 billion in 2012.

The company's shares rose 4.8 percent to $115 at 5:30 p.m. in New York, after closing at $109.71 on the New York Stock Exchange.

© 2017 Thomson/Reuters. All rights reserved.

   
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Kimberly-Clark Corp, the maker of Kleenex tissues, said its board authorized a potential spin-off of its health care business, sending its shares higher in extended trading Thursday.
Kimberly-Clark,Spin-Off,Health,Care
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2013-27-14
Thursday, 14 Nov 2013 05:27 PM
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