Cardinal Health, San Diego, completed the spin-off of CareFusion Corp through a pro rata distribution of approximately 81% of the shares of CareFusion common stock, launching it as an independent, publicly traded company.
CareFusion provides products and services for medication and supply management, infusion, ventilation, and respiratory diagnostic instruments, among others. The company’s focus is on preventing medication errors and hospital-acquired infections.
The CareFusion board of directors named David L. Schlotterbeck as chairman; he will continue in his role as as chief executive officer. Michael Losh was named presiding director.
"Our experienced management team and more than 15,000 employees begin today ready to serve our global customers as a new public company," said Schlotterbeck, in a September 1 announcement. "We have a track record of innovation and growth that we intend to make a hallmark of CareFusion for the future."
CareFusion opened regular-way trading on the New York Stock Exchange September 1 and will be included in the S&P 500 index.
According to Cardinal Health, after the close of business on August 31, Cardinal Health distributed to its shareholders 0.5 shares of CareFusion common stock for each outstanding Cardinal Health common share held as of market close on August 25. Cardinal Health retained approximately 41 million shares, which, pursuant to the IRS private letter ruling for the spinoff, it is required to divest within five years. Including shares held by Cardinal Health, there are approximately 222 million shares of CareFusion common stock outstanding following the spinoff.
To commemorate the company’s launch, Schlotterbeck and the CareFusion management team will ring the opening bell at the New York Stock Exchange on September 10.