Kimberly-Clark Nabs I-Flow for $324 Million
by Brendon Nafziger
, DOTmed News Associate Editor | October 14, 2009
Consumer brands giant
moving into medical devices
Kimberly-Clark Corporation, perhaps best known for consumer goods like Kleenex and Depends, has announced it will buy drug-pump maker I-Flow Corporation for around $324 million.
In a statement released Friday, Kimberly-Clark said I-Flow would join its health care division, which accounts for around six percent of the company's total global $19.4 billion in sales.
Kay Jackson, a spokesperson for Kimberly-Clark, tells DOTmed News that the purchase of I-Flow, which makes the ON-Q post-op pain-management pumps, is part of Kimberly-Clark's strategy to get into higher-margin medical devices. In fact, the deal follows closely on the heels of a related Kimberly-Clark acquisition. Just last Monday, Kimberly-Clark picked up a division of Baylis Medical, a device company that makes, among other things, anti-pain probes for use in back surgery.
As for I-Flow, Jackson says the company, which sees around $133 million in annual sales, offers products that complement Kimberly-Clark HealthCare's own lines of feeding tubes, placements kits, infection control products and airway management devices.
"They have a highly trained sales force," she says. "We feel that because we have complementary products, their sales team will help us...[reach] physicians."
Jackson can't comment on what this means for Kimberly-Clark's overall financial picture, as they're set to report their earnings next week.