Kimberly-Clark commences tender offer to acquire I-Flow

Tue. October 20, 2009; Posted: 02:19 PM

Oct 20, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- KMB | Quote | Chart | News | PowerRating -- Update on October 20, 2009:

Kimberly-Clark Corporation has commenced a cash tender offer to acquire all of the outstanding shares in I-Flow Corporation, a manufacturer and marketer of drug delivery systems for pain management and infusion therapy.

Kimberly-Clark is a health and hygiene company offering personal care and consumer tissue products. Both the companies are based in the US.

The tender offer is scheduled to expire on November 17, 2009, unless extended.

Announcement (October 9, 2009):

Kimberly-Clark has entered into a definitive agreement to acquire all of the outstanding shares in I-Flow at a price of $12.65 per share in cash. The transaction is valued at approximately $324 million on a fully diluted basis. The total transaction value, which is net of acquired cash and cash equivalents, is about $276 million.

The offer price represents a 31% premium to I-Flow's most recent 60-day average share price. The Boards of Directors of both the companies have unanimously approved the transaction. The transaction is expected to close in the fourth quarter of 2009.

Upon completion, I-Flow will operate as part of Kimberly-Clark Health Care, a global business segment of Kimberly-Clark Corporation.

Goldman, Sachs & Co. is acting as exclusive financial advisor to I-Flow and Citigroup, Inc. is acting as exclusive financial advisor to Kimberly-Clark.

Deal Value (US$ Million) 324
Deal Type                Acquisition
Sub-Category             100% Acquisition
Deal Status              Announced: 2009-10-09

Deal Participants

Target (Company)   I-Flow Corporation
Acquirer (Company) Kimberly-Clark Corporation

Deal Rationale

This acquisition will significantly strengthen Kimberly-Clark's health care business to include higher-growth and higher-margin medical devices. It will also facilitate Kimberly-Clark to increase its medical device sales by more than 50% and add an innovative and successful technology to its growing portfolio of pain management and surgical solution products.

Bid Premium ($ per share) 31

For full details on Kimberly Clark Corp (KMB) click here. Kimberly Clark Corp (KMB) has Short Term PowerRatings of 5. Details on Kimberly Clark Corp (KMB) Short Term PowerRatings is available at This Link.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.