Halyard Health Debuts After Spin-Off from Kimberly-Clark
Halyard Health Inc. (HYH), a global medical technology company, has begun trading on the New York Stock Exchange from Nov 3 after it was spun-off from Kimberly-Clark Corporation (KMB) on Oct 31.
Kimberly-Clark first decided to carve out its health care business in Nov 2013 to focus on its core consumer and professional brands, optimize its performance and offer flexibility to pursue value-creation opportunities. (Read: Kimberly-Clark Files for Planned Spin-Off).
The spin-off involved a tax-free distribution of 100% of Halyard Health's common stock to Kimberly-Clark shareholders. Accordingly, Kimberly-Clark shareholders received one share of Halyard Health common stock for every eight shares of Kimberly-Clark common stock held as of Oct 23, 2014, which was the record date for the spin-off. In addition, Kimberly-Clark shareholders received cash for any fractional shares.
Headquartered in Alpharetta, GA, Halyard Health reported net sales of $1.7 billion in 2013 and has a market leading position in both surgical and infection prevention products and medical devices. Robert Abernathy – the president of Kimberly-Clark's Europe group – is the CEO of the new health care company.
The new company will be able to capitalize its position in several key categories to boost its operations and set new growth targets. Halyard Health, which focuses on preventing infection, eliminating pain and speeding recovery, is expected to address some of today's most important health care needs, such as preventing infection and reducing the use of narcotics, while helping patients recover faster.
Also, the role of Halyard Health increases amid the deadliest ever outbreak of the Ebola virus, as demand for eye shields, face masks and disposable gowns made by the new company has surged.
Kimberly-Clark holds a Zacks Rank #3 (Hold).
Better-ranked stocks in the consumer staples sector include The Hain Celestial Group, Inc. (HAIN), United Natural Foods, Inc (UNFI) and McCormick & Company, Inc. (MKC), each of them carrying a Zacks Rank #2 (Buy).
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