Cardinal spins off medical technology business

Executive Summary

Cardinal Health will spin off its medical technology businesses as a separate public company, leaving Cardinal with its pharmaceutical and medical product distribution business. Cardinal CEO Kerry Clark will retire from the company after completion of the spinoff, to be succeeded by current health care supply chain services CEO George Barrett. David Schlotterbeck, CEO of clinical and medical products, will head the new company, to be headquartered in San Diego. The proposed tax-free spinoff will be done through a pro rata distribution to Cardinal shareholders and is expected to be completed in mid-2009. Cardinal discussed the potential benefits of a spinoff during its most recent quarterly earnings call (1"The Pink Sheet," Aug. 11, 2008, p. 22)