Kimberly Clark spins paper operations
June 14, 2004 By Pulp & Paper Canada
Kimberly-Clark has decided to pass the torch by greatly reducing its Canadian pulp and paper operations. Accounting…
Kimberly-Clark has decided to pass the torch by greatly reducing its Canadian pulp and paper operations. Accounting for less than three per cent of its revenue, the pulp and paper enterprise will be absorbed by Neenah Paper, the company’s fine paper business, Technical Paper, its specialty paper business and pulp and timber operations in Canada. The spin-off plan will permit the company to concentrate on its core consumer products.
In addition to approving the plan, Kimberly-Clark’s board of directors has also authorized the buyback of 25 million shares of stock over the next several years. The plan comes two months after the company raised its 2004 target for buybacks to $1 billion. The purchase of 6.2 million shares completed in May came with a price tag of $395 million. Last year the company purchased 10.4 million shares for $529 million.
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