Cardinal Health Completes Spinoff of CareFusion Corp.
01 September 2009 - 11:00PM
PR Newswire (US)
DUBLIN, Ohio, Sept. 1 /PRNewswire-FirstCall/ -- Cardinal Health
today announced it has completed the spinoff of CareFusion Corp.
(NYSE:CFN) through a pro rata distribution of approximately 81
percent of the shares of CareFusion common stock, effectively
launching it as an independent, publicly traded company. After the
close of business yesterday, Cardinal Health distributed 0.5 share
of CareFusion common stock for each outstanding share of Cardinal
Health common stock held as of market close on Aug. 25, the record
date for the distribution. Approximately 222 million shares of
CareFusion common stock were outstanding as of the distribution,
including certain equity awards issued in the spinoff.
Approximately 180 million shares were distributed to Cardinal
Health shareholders of record as of Aug. 25, and approximately 41
million shares were retained by Cardinal Health, which it will
divest within five years. CareFusion common stock will begin
regular way trading today on the New York Stock Exchange under
ticker symbol "CFN." Additionally, the appointment of George S.
Barrett as chairman and chief executive officer of Cardinal Health
became effective upon completion of the spinoff on Aug. 31. The
resignations of Philip Francis, Michael Losh and Michael O'Halleran
from the Cardinal Health board of directors were also effective
upon completion of the spinoff, with all three transitioning to the
board of directors of CareFusion in connection with the spinoff. As
previously announced, the new Cardinal Health board will consist of
10 members, including two new directors, Bruce L. Downey, effective
yesterday and Glenn A. Britt, effective Oct. 1. "The completion of
the CareFusion spinoff marks a new day for Cardinal Health,"
Barrett said. "We are focused on our role in helping make health
care more cost-effective and our commitment to improving
shareholder value." Cardinal Health is expected to benefit from
enhanced management focus and sharper strategic vision, as well as
improved opportunities to make investments in growth areas. In
addition, the spinoff is expected to improve the alignment of
management and employee incentives with performance and growth
objectives at the company. The completion of the spinoff also
allows Cardinal Health to adopt the capital structure, investment
policy and dividend policy best suited to the financial profile and
needs of the business. About Cardinal Health Headquartered in
Dublin, Ohio, Cardinal Health, Inc. (NYSE:CAH) is a Fortune 18
health care services company that improves the cost-effectiveness
of health care. As the business behind health care, Cardinal Health
helps pharmacies, hospitals and ambulatory care sites focus on
patient care while reducing costs, improving efficiency and
quality, and increasing profitability. As one of the largest health
care companies in the world, Cardinal Health is an essential link
in the health care supply chain, providing pharmaceuticals and
medical products to more than 40,000 locations each day. The
company is also a leading manufacturer of medical and surgical
products, including gloves, surgical apparel and fluid management
products. In addition, the company supports the growing diagnostic
industry by supplying medical products to clinical laboratories and
operating the nation's largest network of radiopharmacies that
dispense products to aid in the early diagnosis and treatment of
disease. Cardinal Health employs more than 30,000 people worldwide.
More information about the company may be found at
cardinalhealth.com. Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing
matters that are dependent upon future events or developments.
These matters are subject to risks and uncertainties that could
cause actual results to differ materially from those projected,
anticipated or implied. In addition, Cardinal Health and CareFusion
are subject to risks and uncertainties described in CareFusion
Corporation's Form 10 registration statement and Cardinal Health's
Form 10-K, Form 10-Q and Form 8-K reports (including all amendments
to those reports) and exhibits to those reports. This news release
reflects management's views as of September 1, 2009. Except to the
extent required by applicable law, Cardinal Health and CareFusion
undertake no obligation to update or revise any forward-looking
statement. DATASOURCE: Cardinal Health, Inc. CONTACT: Media: Troy
Kirkpatrick, +1-614-757-6225, ; Investors: Jon Lyons,
+1-614-757-3996, , both of Cardinal Health, Inc. Web Site:
http://www.cardinalhealth.com/
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