Kimberly-Clark Gets New Business

Kimberly-Clark Corp. (KMB - Analyst Report) announced that it acquired Baylis Medical Co.'s pain management business. The acquisition also includes a number of innovative, minimally-invasive radio-frequency pain management products.

Baylis was founded by Gloria Baylis (a registered nurse) in Montreal in 1986. In addition, to pain management products, the company also makes high-tech medical devices for cardiology and radiology.

The acquisition is believed to improve the competitive position of the company’s Health Care segment in the $2 billion global market for minimally invasive chronic spinal pain management. 

However, the financial terms of the transaction were not disclosed. Since 2001, Kimberly Clark's Health Care division has been the exclusive distributor of Baylis Medical's pain management products in the U.S.

Management stated that the Baylis pain management business acquisition is consistent with the company’s global business strategy to invest in the higher-growth, higher-margin medical device market. This transaction will enable Kimberly-Clark to accelerate its growth in the pain management business around the world while strengthening its commitment to patients suffering from chronic spinal pain.

Kimberly-Clark is known as the maker of Huggies diapers and Kleenex tissues. Its Health Care segment (5% of revenues) manufactures and markets disposable health care products, such as surgical gowns, drapes, infection control products, sterilization wrap, face masks, exam gloves, respiratory items and other disposable medical products.