K-C Completes Spinoff of Healthcare Business
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Kimberly-Clark Corp., Dallas, Texas, USA, this week announced the record date, distribution date, and distribution ratio for the previously announced tax-free spin-off of its health care business. The spin-off will form the new publicly traded company, Halyard Health Inc. K-C also increased its 2014 share repurchase program to take into account expected proceeds as a result of the spin-off.
K-C shareholders will receive one share of Halyard Health common stock for every eight shares of Kimberly-Clark common stock held as of the close of trading on Oct. 23, 2014, the record date for the spin-off. Kimberly-Clark shareholders will receive cash in lieu of any fractional shares. The spin-off is expected to be effective as of the end of the day on October 31, the distribution date for the spin-off, with 100% of the shares of Halyard Health distributed to K-C shareholders.
Before completion of the spin-off, Halyard Health expects to make a one-time cash payment to K-C. As a result, K-C is increasing its 2014 share repurchase target to $2 billion, up from its previous plan of $1.3 to $1.5 billion.
"The spin-off will let Halyard Health pursue its own value-creation opportunities as a focused healthcare company," said Thomas J. Falk, chairman and CEO of Kimberly-Clark. "Looking ahead, we continue to be optimistic about our prospects to deliver strong returns to shareholders through successful execution of our global business plan."
