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
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 –
, 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
– Global Health Care, work closely with
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."