Kimberly-Clark to Acquire Ballard Medical

Kimberly-Clark Corp. is acquiring Ballard Medical Products, a leading maker of disposable medical devices for respiratory care, gastroenterology, and cardiology. The acquisition will provide Kimberly-Clark's professional health care business with new technologies and product offerings that will allow it to continue expanding into new segments and markets, while leveraging its existing products and technologies. The combined health care operation is expected to have annual sales of approximately $700 million in 1999.

Under the agreement, Ballard shareholders will receive $25 for each share of Ballard Medical common stock, payable in Kimberly-Clark stock. The Kimberly-Clark shares to be delivered will be valued based on the average closing price of Kimberly-Clark stock over a period of 10 trading days ending 5 trading days prior to the date of closing. Based on Ballard's 30.5 million shares outstanding, the transaction has an equity value of $764 million. Ballard has no interest-bearing debt outstanding.

The agreement has been unanimously approved by the boards of directors of both companies. David R. Murray, president of Kimberly-Clark's professional health care sector, will lead the combined operation. Dale H. Ballard, chairman, president and CEO of Ballard Medical, will become a consultant to the business.

Kimberly-Clark is a leading global manufacturer of personal care, consumer tissue, and away-from-home products.