Kimberly-Clark to spin off health care business

|About: Kimberly-Clark Corporation (KMB)|By:, SA News Editor

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.