Cardinal Health, Inc. (NYSE: CAH) is going to shuffle things up. The healthcare products and services company plans a tax-free spin-off of its clinical and medical products businesses as a separate public company. The new company will be led by current vice chairman David L. Schlotterbeck. Cardinal expects the deal to be completed by the middle of 2009.
Chairman and CEO R. Kerry Clark will leadCardinal Health through the spin-off, but will then will retire fromthe company. He will besucceeded by George S. Barrett, who was with Teva’s North Americanoperations prior to joining Cardinal in January. Cardinal has alsoannounced that founder Robert D. Walter will retire from its board ofdirectors by not standing for re-election when his term expires onNovember 5.
Cardinal’s clinical and medical products businesseswill be based in San Diego. Some of its products will include the AlarisIV infusion and Pyxis dispensing systems, AVEA and LTV seriesventilators, V. Mueller surgical instruments, and offerings to reducehospital-acquired infections.
Fiscal 2009 pro forma revenue for these businesses is expected to be more than $4 billion, which would place theindependent company among the largest medical-technology firms globally, according to the Cardinal.
Shares closed at $48.84 on Friday, which is at the bottom of its $48.70 to $69.00 trading range over the last 52-weeks.
Jon C. Ogg
September 29, 2008
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