Texas-based Kimberly-Clark said it plans to spin off its healthcare business so it can focus on its consumer and K-C Professional brands.
The move would create a stand-alone, publicly traded healthcare company, valued at about $1.6 billion, with products targeting the surgical and infection prevention markets. K-C Chairman and CEO Thomas Falk said the idea is to “allow K-C Health Care to optimize its performance and flexibility to pursue its own value-creation opportunities.”
K-C’s board of directors has authorized further analysis of the proposed spin-off and expects to make a final recommendation in the next few months. If approved, a transaction would likely be completed by the end of the 2014 third quarter, subject to market, regulatory and other conditions, the company said.
Robert Abernathy has been tapped to head the new company. He currently is K-C group president — Europe for global nonwovens and continuous improvement and sustainability. Abernathy joined K-C in 1982 and has held various roles throughout the company. — Nick Otto
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