Spin-offs

[rnsmth]

KMB is going to spin off its health care business. This makes at least three of my companies planning spin-offs - GE and BAX are the other two.

Do not have much experience with this.

http://finance.yahoo.com/news/kimberly-c...04400.html

Quote:Consumer products giant Kimberly-Clark Corporation ( KMB) has recently filed a registration statement with the Securities and Exchange Commission for the planned spin off its health care business, which was announced in Nov 2013.

The spin-off is expected to be complete by the end of this year. The new company will be named as Halyard Health, Inc. and will be headquartered in Alpharetta, GA, near Atlanta.

Post spin-off, Halyard will become a separate publicly traded company with about $1.7 billion in annual sales, and is expected to trade on the New York Stock Exchange. It already has a market leading position in both surgical and infection prevention products and medical devices. Robert Abernathy – the president of Kimberly-Clark's Europe group – will become the CEO of the new healthcare company.

The spin-off will involve a tax-free distribution of 100% of Halyard Health's common stock to Kimberly-Clark shareholders. The distribution is expected to be complete at the end of the third quarter or in the fourth quarter of 2014, subject to market and other regulatory approvals. Prior to the spin off, Kimberly-Clark will receive a cash distribution from Halyard Health, which will be utilized to repurchase shares.