Kimberly-Clark May Pursue Health Care Spin-Off
Kimberly-Clark Corporation (NYSE: KMB) reported that its board of directors authorized management to pursue a potential tax-free spin-off of the company's health care business.
This spin-off would create $1.6 billion in annual net sales and lead the market position in surgical and infection prevention products and medical devices.
In the press release, Chairman and CEO Thomas Falk commented, "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."
Kimberly-Clark's Group President Robert Abernathy will take the role of chief executive officer of the new health care company if the spin-off occurs.
A conference call will be held tomorrow November 15, 2013 at 9 a.m. (CST). The call will be broadcast over the internet. Investors and the general public can access the live broadcast by following the instructions in the Investors section of the company's website, www.kimberly-clark.com.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.