Kimberly-Clark Begins Tender Offer to Acquire I-Flow Corporation
October 20 2009 - 8:00AM
PR Newswire (US)
DALLAS, Oct. 20 /PRNewswire-FirstCall/ -- Kimberly-Clark
Corporation (NYSE:KMB) today will commence a cash tender offer to
purchase all outstanding shares of common stock of I-Flow
Corporation (NASDAQ:IFLO). On October 9, 2009, the companies
previously announced a definitive agreement whereby Kimberly-Clark
would acquire I-Flow in a cash tender offer and subsequent merger
for approximately $324 million on a fully diluted basis. Upon the
successful closing of the tender offer, stockholders of I-Flow will
receive $12.65 in cash for each share of I-Flow common stock
tendered in the offer, without interest and less any required
withholding taxes. If more than 50 percent but less than all of the
outstanding shares of I-Flow common stock are tendered, and all
other closing conditions are satisfied, any remaining shares not
tendered will be converted into the right to receive the same
consideration in cash in connection with a merger of
Kimberly-Clark's merger subsidiary into I-Flow. Following the
purchase of shares in the tender offer, I-Flow will operate as part
of Kimberly-Clark Health Care, a global business segment of
Kimberly-Clark Corporation, with net sales of more than $1 billion.
Today, Kimberly-Clark will file with the Securities and Exchange
Commission (SEC) a tender offer statement on Schedule TO that
provides the terms of the tender offer, and I-Flow will file a
solicitation/recommendation statement on Schedule 14D-9 that
includes the recommendation of I-Flow's board of directors that
I-Flow stockholders accept the tender offer and tender their shares
in the offer. As previously disclosed, I-Flow's board of directors
has unanimously approved the transaction. Kimberly-Clark's board of
directors has also unanimously approved the transaction. The tender
offer will expire at midnight on November 17, 2009, unless extended
in accordance with the merger agreement and the applicable rules
and regulations of the SEC. The closing of the tender offer is
conditioned upon the tender of a majority of the outstanding shares
of I-Flow Corporation's common stock on a fully diluted basis. The
closing is also conditioned upon expiration or termination of the
applicable waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act and other customary closing conditions. About
Kimberly-Clark and Kimberly-Clark Health Care Kimberly-Clark and
its well-known global brands are an indispensable part of life for
people in more than 150 countries. To learn more about
Kimberly-Clark and its 137-year history of innovation, visit
http://www.kimberly-clark.com/. Around the world, medical
professionals turn to Kimberly-Clark for a wide portfolio of
solutions that improve the health, hygiene and well-being of their
patients and staff. As part of their healing mission, caregivers
rely on Kimberly-Clark Health Care to deliver clinical solutions
and educational resources that they can depend on to prevent,
diagnose and manage a wide variety of healthcare-associated
infections. This over $1 billion global business segment of
Kimberly-Clark Corporation holds the No. 1 or No. 2 positions in
several categories including infection control solutions, surgical
solutions, pain management and digestive health. And throughout the
care continuum, patients and staff alike trust Kimberly-Clark
medical supplies and devices, Kleenex brand tissues, Kimberly-Clark
professional skin care products, and Scott brand towels for
day-to-day needs. For more information, please visit
http://www.kchealthcare.com/. This press release contains
"forward-looking statements". Such statements include, but are not
limited to, statements about the expected benefits of the
transaction involving Kimberly-Clark and I-Flow, including
potential synergies and cost savings, future financial and
operating results, and the combined company's plans and objectives.
In addition, statements made in this communication about
anticipated financial results, future operational improvements and
results or regulatory approvals are also forward-looking
statements. These statements are based on current expectations of
future events. If underlying assumptions prove inaccurate or
unknown risks or uncertainties materialize, actual results could
vary materially from Kimberly-Clark's and I-Flow Corporation's
expectations and projections. Risks and uncertainties include the
satisfaction of closing conditions for the acquisition, including
expiration or termination of the applicable waiting period under
the Hart-Scott-Rodino Antitrust Improvements Act and the tender of
a majority of the outstanding shares of common stock of I-Flow,
calculated on a fully diluted basis; the possibility that the
transaction will not be completed, or if completed, not completed
on a timely basis; the potential that market segment growth will
not follow historical patterns; general industry conditions and
competition; business and economic conditions, such as interest
rate and currency exchange rate fluctuations; technological
advances and patents attained by competitors; challenges inherent
in new product development, including obtaining regulatory
approvals; domestic and foreign governmental laws and regulations,
and trends toward healthcare cost containment. Kimberly-Clark can
give no assurance that any of the transactions related to the Offer
will be completed or that the conditions to the Offer and the
merger will be satisfied. A further list and description of
additional business risks, uncertainties and other factors can be
found in Kimberly-Clark's Annual Report on Form 10-K for the fiscal
year ended December 31, 2008, and I-Flow's Annual Report on Form
10-K for the fiscal year ended December 31, 2008, as well as other
Kimberly-Clark and I-Flow SEC filings. Copies of these filings, as
well as subsequent filings, are available online at
http://www.sec.gov/, http://www.kimberly-clark.com/,
http://www.iflo.com/ or on request from Kimberly-Clark or I-Flow.
Many of the factors that will determine the outcome of the subject
matter of this communication are beyond Kimberly-Clark's or
I-Flow's ability to control or predict. Neither Kimberly-Clark nor
I-Flow undertakes to update any forward-looking statements as a
result of new information or future events or developments.
Important Additional Information The tender offer described in this
release will commence today. This release is neither an offer to
purchase nor a solicitation of an offer to sell securities.
Kimberly-Clark will file a tender offer statement on Schedule TO
with the U.S. Securities and Exchange Commission (SEC). INVESTORS
AND I-FLOW STOCKHOLDERS ARE STRONGLY ADVISED TO READ THE TENDER
OFFER STATEMENT (INCLUDING THE OFFER TO PURCHASE, LETTER OF
TRANSMITTAL AND RELATED TENDER OFFER DOCUMENTS) AND THE RELATED
SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 THAT WILL
BE FILED BY I-FLOW WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. These documents will be available at no charge on the
SEC's website at http://www.sec.gov/. In addition, a copy of the
offer to purchase, letter of transmittal and certain other related
tender offer documents (once they become available) may be obtained
free of charge by directing a request to Kimberly-Clark at P.O. Box
612606, Dallas, Texas 75261-2606, by phone at 972-281-1522, or
email: . http://www.newscom.com/cgi-bin/prnh/19991117/KMBLOGO
http://photoarchive.ap.org/ DATASOURCE: Kimberly-Clark Corporation
CONTACT: media, Kay Jackson, Kimberly-Clark, +1-972-281-1486, ; or
investors, Paul Alexander, +1-972-281-1440, , both of
Kimberly-Clark Web Site: http://www.kimberly-clark.com/
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