Healthcare products company Cardinal Health, Dublin, Ohio, has completed a spinoff of its clinical- and medical-products businesses into CareFusion Corp., San Diego.
The long-planned split was designed to make both companies more nimble by narrowing their focus to specific areas of business. CareFusion will concentrate on sales of hospital supplies such as ventilators and infection-prevention products while Cardinal plans to focus on its pharmacy business, which includes a network of radiopharmacy dispensaries.
Following close of business on Monday, the spinoff distributed roughly 180 million shares of CareFusion common stock to Cardinal shareholders who held stock in the company as of Aug. 25, according to a new release. Cardinal held on to 41 million shares of CareFusion, maintaining an 18.5% stake in the spinoff. Company officials have said Cardinal will fully divest its interest in CareFusion within five years.
In conjunction with the spinoff activity, CareFusion's board of directors named CEO David Schlotterbeck, 62, chairman of the company as well. CareFusion opened this morning at $19.65 per share for its first day of trading on the New York Stock Exchange, giving the company an initial value of approximately $4.3 billion.