Tissue World Magazine

Kimberly-Clark (K-C) has 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.

K-C also increased its 2014 share repurchase programme 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 K-C common stock held as of the close of trading on 23 October, the record date for the spin-off.

The spin-off is expected to be effective as of the end of the day on 31 October, the distribution date for the spin-off, with 100% of the shares of Halyard Health distributed to Kimberly-Clark shareholders.

Before completion of the spin-off, Halyard Health expects to make a one-time cash payment to Kimberly-Clark.

As a result, Kimberly-Clark is increasing its 2014 share repurchase target to $2 billion, up from its previous plan of $1.3 to $1.5 billion.

K-C chairman and CEO Thomas J. Falk said: “The spin-off will let Halyard Health pursue its own value-creation opportunities as a focused healthcare company.

“Looking ahead, we continue to be optimistic about our prospects to deliver strong returns to shareholders through successful execution of our global business plan.”

Halyard Health is a medical technology company focused on advancing health and healthcare by delivering clinically superior products and solutions in infection prevention, surgical solutions, respiratory health, digestive health and pain management.