Kimberly-Clark to spin off health care business

(AP) - 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. Kimberly-Clark'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. Kimberly-Clark is working with Morgan Stanley on the deal.

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

"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," said Kimberly-Clark CEO and Chairman Thomas Falk.

The health care business is based in Roswell, Ga., and has more than 16,000 employees around the world.

Shares of Kimberly-Clark 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 This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Solution: Apodments
    Jason Rantz says paternalistic councilmembers may kill an affordable housing solution

  • Missing Searcher
    A beloved search dog who helped at the Oso mudslide site has gone missing
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.