Cardinal Health to spin off clinical, medical products businesses

By Lisa Kerner

Charlotte, N.C., Sept. 29 - Cardinal Health, Inc. said it expects to complete a tax-free spinoff of its clinical and medical products businesses as a separate public company by the middle of 2009.

Current vice chairman David L. Schlotterbeck will lead the new company.

The proposed spinoff will be accomplished through a pro rata distribution to Cardinal Health shareholders and does not require shareholder approval, a company news release said.

"This strategic decision will benefit Cardinal Health and the new med-tech company by allowing each business to focus on its unique growth strategies, capital needs and customer requirements," chairman and chief executive officer R. Kerry Clark said in the release.

Clark will retire from Cardinal Health once the spinoff is complete. Succeeding Clark will be George S. Barrett, vice chairman and CEO of Cardinal Health's health-care supply chain services segment.

Company founder Robert D. Walter will retire from the board of directors by not standing for re-election when his term expires on Nov. 5, following the company's 2008 annual meeting of shareholders.

Cardinal Health, a Dublin, Ohio, medical and surgical products company, expects to continue its regular $0.14 quarterly dividend until the spinoff is completed and to continue to pay a dividend afterward. The spun-off company, which will be based in San Diego, is not expected to pay regular dividends.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.