Kimberly-Clark Corp. has set Oct. 31 as the spinoff date for its healthcare business. The divestiture will create a new publicly traded company, Halyard Health, according to a recent Kimberly-Clark Securities and Exchange Commission filing.
Dallas-based Halyard will produce surgical and infection prevention products and medical devices previously made by Kimberly-Clark Health Care.
“The spinoff 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 Corp, in a statement.
The spinoff comes while other medical-device makers are consolidating. Devicemaker Medtronic, for example, is in the process of buying Ireland-based Covidien for roughly $43 million.
Halyard has applied to list on the New York Stock Exchange under the ticker symbol HYH, and Kimberly-Clark expects “when-issued” trading to begin on or about Oct. 21 with regular trading expected to begin Nov. 3.
The spinoff is expected to help Kimberly-Clark focus on its consumer and industrial products.
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