In order to provide clinical solutions,
) has agreed to acquire the anesthesia business of Texas-based
Life-Tech, Inc. The anesthesia business will form a part of ON-Q
family of products of Kimberly-Clark's Health Care segment. The
acquired assets will include needles, catheters and accessories,
which are used in peripheral nerve block (PNB) processes.
Financial terms of the deal were not disclosed.
The acquisition is a strategic fit for Kimberly-Clark as the
company seeks to become a leader in health care offering in the
PNB solutions segment. Also, the acquisition will help the
company to acquire a leading position in the pain pump market.
The acquisition news drove the share price of Kimberly-Clark to a
new 52-week high of $99.89 on Apr 2 and eventually closed at
$99.76. Year-to-date, the stock has generated a return of
Lately, Kimberly-Clark has been focusing on improving its
health care business. In early-February, Kimberly-Clark increased
production of face masks and other Personal Protective Equipment
products as a measure to check the widespread influenza season
across the country. Later in mid-February, Kimberly-Clark
launched a CERVICOOL Cooled Radiofrequency System for reducing
cervical facet joint pain.
Overall, we are encouraged by the company's leadership
position in several categories, including infection control
solutions, surgical solutions, pain management, hygiene solutions
and digestive health. Besides health care, Kimberly-Clark holds a
market leading position in several other consumer product
categories including diapers, paper goods and female personal
care. Moreover, Kimberly-Clark focuses on improving its products
through innovation in order to remain competitive and drive
Kimberly-Clark currently holds a Zacks Rank #3 (Hold). Other
consumer staple stocks, which are better positioned and warrant a
Flower Foods Inc
Newell Rubbermaid, Inc.
). While Flower Foods holds a Zacks Rank #1 (Strong Buy), Newell
and Kellogg carry a Zacks Rank #2 (Buy).
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