On Air Now

Current Show

Coast to Coast AM   12:00 AM - 5:00 AM

Call Coast to Coast now at 1-800-825-5033

Show Info »

Upcoming Shows

Program Schedule »

Listen

Listen Live Now » 590 AM Kalamazoo, MI

Weather

Current Conditions(Kalamazoo,MI 49001)

More Weather »
47° Feels Like: 43°
Wind: NNW 9 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Tonight

Showers 45°

Tomorrow

AM Rain 61°

Sat Night

Mostly Clear 41°

Alerts

Kimberly-Clark pursues spin-off of health care business

A package of Kleenex brand tissue, made by Kimberly-Clark, is shown in Boca Raton, Florida October 22, 2013. REUTERS/Joe Skipper
A package of Kleenex brand tissue, made by Kimberly-Clark, is shown in Boca Raton, Florida October 22, 2013. REUTERS/Joe Skipper

(Reuters) - Kimberly-Clark Corp, the maker of Kleenex tissues, said its board authorized a potential spin-off of its health care business, sending its shares up 6 percent in extended trading.

The company said the move would enable it to focus on its consumer and K-C professional brands.

Kimberly-Clark said Robert Abernathy, currently group president - Europe, global nonwovens and continuous improvement and sustainability, will become chief executive of the new health care company if its spun off.

The company said it expects to make a final recommendation regarding in the next several months. If the spin-off is approved, the transaction would be completed by the end of the third quarter of 2014.

Morgan Stanley has been retained by the company in pursuit of the spin-off.

Kimberly-Clark's health care business sells surgical and infection prevention products for the operating room, as well as medical devices. It posted net sales of $1.6 billion in 2012.

The company's shares were trading at $116.60 after markets closed. They had closed at $109.71 on the New York Stock Exchange on Thursday.

(Reporting By Maria Ajit Thomas in Bangalore; Editing by Joyjeet Das)

Comments