Cardinal Health board of directors has approved the spinoff of CareFusion through a pro rata distribution of at least 80% of the shares of CareFusion common stock to Cardinal Health shareholders, with Cardinal Health retaining the remaining shares.
The board voted to approve the spinoff after concluding that, as separate companies, both Cardinal Health and CareFusion will benefit from enhanced management focus and sharper strategic vision, as well as improved opportunities to make investments in their respective growth areas.
The spinoff is expected to allow each company to adopt the capital structure, investment policy and dividend policy best suited to the financial profile and needs of each business.
In addition, the spinoff is expected to improve the alignment of management and employee incentives with performance and growth objectives at each company.
Kerry Clark, Chairman and CEO of Cardinal Health, said: “After a thorough and thoughtful review, the board unanimously approved the spinoff with the intent to create greater long-term value for shareholders. We are eager to begin new chapters for Cardinal Health and CareFusion, as the focus on improving the cost-effectiveness and quality of health care, particularly in the US, plays directly into the unique strengths of both companies.”
The distribution of shares of CareFusion common stock will be made after the close of trading on Aug. 31 to Cardinal Health’s shareholders of record as of 5 p.m. EDT on Aug. 25, the record date for the spinoff.