• Kimberly-Clark spins off its health care business
Kimberly Clark has completed the spin-off of its health care division, now known as Halyard Health.
The consumers packaged goods giant said divesting itself of this pure health care business was in the best interest of its shareholders longterm as it seeks to concentrate on its core business and iconic brands of Huggies and Kleenex.
Kimberly-Clark shareholders received one share of Halyard Health common stock for every eight shares of Kimberly-Clark common stock they held at the close of trading on Oct. 23, the record date for the spin-off. Halyard shares began "regular way" trading on the New York Stock Exchange on Monday (Nov. 3.) Halyard shares (NYSE: HYH) were trading up 28 cents at $38.25 during the early afternoon session Monday.
"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 Corp. "Looking ahead, we continue to be optimistic about our prospects to deliver strong returns to shareholders through successful execution of our Global Business Plan."
Kimberly-Clark is a major supplier to Wal-Mart Stores and operates a sales office in Northwest Arkansas.
• Dr Pepper Snapple acquires Davis Beverage
The Dr Pepper Snapple Group has acquired the Davis Beverage Group and Davis Bottling Co. in Bethlehem, Pa., in an effort extend brand reach in the Northeast. Terms of the agreement were not disclosed. The acquisition includes a 42-county distribution territory covering most of the Eastern half of Pennsylvania, excluding the Philadelphia area, as well as Western and Central New Jersey.
Dr Pepper Snapple Group said it will add glass package manufacturing capabilities and assume control of the distribution of many of its brands, including 7UP, Snapple, A&W, Canada Dry and Sunkist, as well as allied brands such as Bai5, FIJI, Vita Coco and Neuro, among others, in the newly acquired territory.
The expansion builds on efforts to strengthen the company’s route to market, improve operating efficiency and leverage its integrated business model, according to the Dr Pepper Snapple Group.
Dr Pepper Snapple is a supplier to Wal-Mart Stores and operates a retail sales office in Northwest Arkansas.