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.
KMB +4.3% AH.