Kimberly-Clark to Spin Off Healthcare Business

by Christopher Freeburn | November 15, 2013 8:56 am

Kimberly-Clark Corp. (NYSE: KMB)[1]Shares of Kimberly-Clark (KMB[2]) surged almost 3% in Friday pre-market trading after the company said it plans to separate its health care unit[3].

KMB’s medical products business manufactures a variety of health care-related items, including catheters, surgical masks and sterile bandages. The unit generates about $1.6 billion in annual sales, 70% of which are made in North America. The company said the spin-off would be a tax-free transaction, Bloomberg noted.

Comprising 7.7% of KMB’s total sales last year, the health care unit posted a 4% gain in sales in the most recent quarter. KMB’s European group president, Robert Abernathy, will become CEO of the health care business when it becomes a separate, publicly-traded company.

After the spin off, KMB management will refocus on its core consumer products business.

Last year. KMB reported overall sales of $21.1 billion.

More Spin Off Headlines:

  1. [Image]:
  2. KMB:
  3. said it plans to separate its health care unit:
  4. Microsoft Needs to Spin Off Xbox, Bing:
  5. DuPont to Spin Off Unit, Split Into 2:
  6. Sony Rejects Spin-Off Plan:

Source URL:
Short URL: