Cardinal Health to spin off clinical and medical products unit

Cardinal Health has announced plans to spin off its clinical and medical products businesses in order to create a global leader in medical technology.

The firm said David L Schlotterbeck, currently vice-chairman of the Cardinal Health, would be named chairman and chief executive officer of the new public company.

George S Barrett is set to succeed R Kerry Clark as chairman and chief executive officer of Cardinal Health, with Mr Clark retiring following the completion of the spin-off.

The establishment of the new business is expected to be completed by the middle of next year, with both firms hoping to benefit from sharper strategic vision, an improved alignment of management and employee incentives with growth objectives and performance and enhanced management focus.

Both businesses have forecast improved opportunities to allocate and access capital and make investments in their own growth areas.

Mr Clark said: “The substantial strategic and operational steps we have taken put us in the very competitive and enviable market positions we have today. “

He added shareholders, employees and customers would benefit further from greater focus and said he is looking forward to leading the work to complete the spin-off.

Earlier this month, Cardinal Health sold its MedSystems business to private equity firm Linden.