Cardinal Health completes the spinoff of CareFusion Corp

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.