DALLAS—Kimberly-Clark Corp. officials are looking into a possible spin-off of its health care business, making it a stand-alone operation.
The new company would have about $1.6 billion in revenues, 16,000 employees and be headquartered in Roswell, Ga., the firm said. While the health care business has been part of Kimberly-Clark since 1970, Chairman and CEO Thomas J. Falk said, "its strategic fit and growth priorities have changed over time and we now think that pursuing a spinoff makes sense for our shareholders."
The move would open the door for K-C Health Care to pursue its own opportunities and it would allow Kimberly-Clark to focus on its consumer and K-C Professional brands, he said.
Robert E. Abernathy, group president-Europe for global nonwovens, continuous improvement and sustainability, will become CEO of the new company, if K-C Health Care becomes a separate entity, Kimberly-Clark said.