No variable specified
Roswell-based Kimberly-Clark to spin off its health care business
by The Associated Press
November 20, 2013 04:31 PM | 1834 views | 0 0 comments | 10 10 recommendations | email to a friend | print
Kimberly-Clark Corp., which makes Kleenex tissues and Huggies diapers, said on Thursday that it plans to spin off its health care business into a separate publicly traded company. The company’s stock jumped 5 percent in after-hours trading following the announcement Thursday.

The health care business, which makes medical devices and surgical products, has about $1.6 billion in annual sales. The spinoff is expected to be completed at the end of the third quarter of 2014 and is subject to market, regulatory and other conditions. The company is working with Morgan Stanley on the deal.

Robert Abernathy, who is president of the company’s Europe group, will become CEO of the new health care company. Abernathy has worked at the Dallas-based company since 1982.

“While K-C Health Care has been part of our company since the 1970s, its strategic fit and growth priorities have changed over time and we now think that pursuing a spin-off makes sense for our shareholders,” said the company CEO and Chairman Thomas Falk. The health care business is based in Roswell and has more than 16,000 employees around the world. Shares of the company rose $5.79 to $115.50 in after-hours trading Thursday. They were up 87 cents to close at $109.71 during regular trading hours.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, spam, and links to outside websites will also be rejected. Please read our terms of service for full guides