This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kimberly-Clark Pursuing Spin-Off Of Health Care Business

DALLAS, Nov. 14, 2013 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today announced that its board of directors has authorized management to pursue a potential tax-free spin-off of the company's health care business.  A spin-off would create a stand-alone, publicly traded health care company with approximately $1.6 billion in annual net sales and leading market positions in both surgical and infection prevention products and medical devices. 

Chairman and Chief Executive Officer Thomas J. Falk said, "While K-C Health Care has been part of our company since the 1970's, its strategic fit and growth priorities have changed over time and we now think that pursuing a spin-off makes sense for our shareholders.  This move would allow K-C Health Care to optimize its performance and flexibility to pursue its own value-creation opportunities.  A spin-off would also allow us to further sharpen our focus on our consumer and K-C Professional brands.  This announcement is further evidence of our focus on creating shareholder value and how we use portfolio management to run our company."   

Robert E. Abernathy, currently Kimberly-Clark Group President – Europe, Global Nonwovens, and Continuous Improvement and Sustainability, will become chief executive officer of the new health care company if the spin-off ultimately occurs.  Abernathy joined Kimberly-Clark in 1982 and has held senior management positions throughout the company, including having overall responsibility for K-C Health Care from 1997 to early 2004.  Joanne B. Bauer will continue as Kimberly-Clark President – Global Health Care, work closely with Robert Abernathy on separation planning and retire when the spin-off is completed.

"Robert is a seasoned executive with a long track record of success and I'm confident he will be a terrific leader of the new company," said Falk.  "He is excited about working with the many talented individuals on the health care team to create shareholder value as a stand-alone company."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs