Cardinal Health to Spin Off Tech Units

HDM Breaking News, September 29, 2008

Cardinal Health plans to spin off its clinical and medical products businesses as a separate public company. The Dublin, Ohio-based vendor will retain the core pharmaceutical and medical supply chain services that comprise 95% of its revenue.

The spin-off is not unexpected as the company announced in early August that such a move was being considered.

David Schlotterbeck, vice chair of Cardinal Health and CEO of clinical and medical products, will lead the new company. Its current product portfolio includes the Alaris IV infusion and Pyxis medication dispensing systems, MedMined infection control software, CareFusion patient identification information systems, AVEA and LTV series ventilators, V. Mueller surgical instruments, and ChloraPrep preoperative skin preparation products. The new company expects to have fiscal 2009 pre forma revenue of more than $4 billion. Dwight Winstead, group president of clinical and medical products, will serve as COO of the new company.

Cardinal Health also has announced that R. Kerry Clark, chair and CEO, will retire following the spin-off. George Barrett, vice chair and CEO of health care supply chain services, will succeed him. Jeffrey Henderson will remain CFO at Cardinal Health.

More information is available at cardinalhealth.com.

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