Kimberly-Clark acquires I-Flow for $276 million
10 Oct 2009
Kimberly-Clark Corp, the maker of Huggies diapers and Kleenex tissues, has announced its second takeover this week by offering to buy all of healthcare company I-Flow Corp.'s outstanding stock for about $276 million.
The per share price of $12.65 represents an 8 per cent premium to I-Flow's Thursday closing price of $11.76.
On Monday, the company had announced a deal for an undisclosed sum to acquire the pain management business of Baylis Medical co.
"I-Flow will increase our medical device sales by more than 50 per cent, add an innovative and successful technology to our growing portfolio of pain management and surgical solution products, and strengthen the depth and breadth of our sales force," Joanne Bauer, president of Kimberly-Clark Health Care, said in a statement.
Both companies' boards have unanimously approved the I-Flow deal, which is targeted to close in the fourth quarter. The acquisition is expected to add to Kimberly-Clark's earnings starting in 2011.
Kimberly-Clark's core brands include Huggies diapers, Scott paper towels and Kleenex tissues.