Seeking Alpha

Kimberly-Clark to spin off health care business

A spin-off, says the company, would create a stand-alone, publicly traded firm with about $1.6B in annual sales. The unit's "strategic fit and growth priorities have changed over time and we now think that pursuing a spin-off makes sense for our shareholders," says CEO Thomas Falk.

Robert E. Abernathy, currently Kimberly-Clark Group President Europe, Global Nonwovens, and Continuous Improvement and Sustainability, will be CEO of the new company.

Management hopes to execute the spin-off by the end of 2014 Q3. It's expected to be in the form of a tax-free distribution of the new company's common stock to KMB shareholders.

CC tomorrow at 10 ET.

Press release

KMB +4.3% AH.

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Comments (9)
  • vmetla
    , contributor
    Comments (69) | Send Message
    Good news. I missed it while it was in 90s. Not sure what this spin off means to the current KMB holders.


    Good Luck longs.
    14 Nov 2013, 04:31 PM Reply Like
  • Slick E
    , contributor
    Comments (139) | Send Message
    Up 7% after hours. Not a bad return over the last half hour!
    14 Nov 2013, 04:37 PM Reply Like
  • mostserene1
    , contributor
    Comments (3404) | Send Message
    Very nice. I bought this stock during the 2009 crash for 55 or so, and now I can't afford to add to my holdings.
    14 Nov 2013, 05:09 PM Reply Like
  • robertsgirl
    , contributor
    Comments (2) | Send Message
    KMB is one of the best stocks in my portfolio. Hope the spinoff is a benefit to us shareholders.
    14 Nov 2013, 08:06 PM Reply Like
  • tomlos
    , contributor
    Comments (1240) | Send Message
    So for my horizon (30+ yrs) I have an incentive to get into KMB.
    14 Nov 2013, 10:03 PM Reply Like
    , contributor
    Comments (8) | Send Message
    Bought in June up over 8% plus dividends. All my stocks should be this great. I think this company will be as good as any Legacy stock.
    15 Nov 2013, 01:47 AM Reply Like
  • birder
    , contributor
    Comments (1316) | Send Message
    Having become a somewhat more conservative investor in my retirement years, KMB is currently my #2 holding by value in equities. Figured people are going to continue needing toilet paper and Kleenex for a very long time. Bought most of it in 2010 when it was dirt cheap. The fact that it is a dividend aristocrat is another reason I purchased it. I am not much of a fan of spin offs though. Just adds to the difficulty of filling out ones taxes.
    15 Nov 2013, 06:47 AM Reply Like
  • steppppo
    , contributor
    Comments (243) | Send Message
    Great news.
    15 Nov 2013, 09:40 AM Reply Like
  • Dorado Joe
    , contributor
    Comments (2) | Send Message
    Great company, hope to buy more stock on any dip
    17 Nov 2013, 01:21 PM Reply Like
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