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Press Releases
Board of directors authorizes share repurchase program, 100th consecutive regular quarterly dividend
Glenn A. Britt named director, John Finn named presiding director
DUBLIN, Ohio, Aug. 5, 2009 — Cardinal Health today announced that George Barrett has been elected to the company’s board of directors and will serve as chairman and chief executive officer of Cardinal Health, effective on the completion of the planned spinoff of CareFusion Corp. on Aug. 31.
Barrett, 54, has been vice chairman and chief executive officer of the company’s Healthcare Supply Chain Services segment since joining Cardinal Health in January 2008 and will replace R. Kerry Clark who previously announced that he would retire from the company upon completion of the CareFusion spinoff.
“On behalf of the board and all of Cardinal Health, I want to thank Kerry for his clear vision and leadership during his tenure as chairman and CEO,” said Richard Notebaert, a Cardinal Health director since 1999. “His legacy begins with the repositioning of Cardinal Health to better serve our hospital and pharmacy customers and will culminate in the planned spinoff of CareFusion – enabling two companies to better serve their customers, employees and shareholders. We wish him all the best in his next chapter of life.”
In addition, the Cardinal Health board authorized a $500 million share repurchase program, primarily to offset dilution from equity grants associated with the company’s long-term incentive program for employees. The share repurchase authorization expires Aug. 31, 2012.
The board also declared the 100th consecutive regular quarterly dividend, which will pay $0.175 per share on Oct. 15 to shareholders of record on Oct. 1. Cardinal Health had approximately 361 million shares outstanding as of June 30.
Glenn A. Britt, 60, chairman, president and chief executive officer of Time Warner Cable, was also named as a director, effective Oct. 1. Britt joined Time Inc. in 1972 and held finance positions of increasing responsibility including treasurer and chief financial officer. After the merger of Time Inc. and Warner Communications, Britt was named treasurer of Time Warner Inc. and became executive vice president of Time Warner Cable in 1990. Britt has also held the positions of president and chief executive of Time Warner Cable prior to his current role.
“Glenn brings a vast amount of public company leadership and financial expertise to our board of directors,” Barrett said. “His experience will provide unique insights and a solid understanding of the consumer environment, which becomes increasingly important as health care evolves. We look forward to his participation on the board starting this fall.”
Britt serves on the board of the National Cable & Telecommunications Association (NCTA) and is a member of its executive committee. He is also a board member of CableLabs, Walter Kaitz Foundation, Pearl Harbor Memorial Fund, Xerox Corporation and The Paley Center.
He is the recipient of many industry honors, including Broadcasting & Cable’s 2008 Hall of Fame; Cable Positive’s 2007 Joel G. Berger Award; the NCTA’s 2006 Vanguard Award for Distinguished Leadership; The Media Institute’s 2006 American Horizon Award; the NAMIC Stanley B. Thomas Jr. Lifetime Achievement Award; and the 2005 Kaitz Foundation Diversity Champion.
Britt received a bachelor’s degree in economics from Dartmouth College, where he graduated magna cum laude. A member of Phi Beta Kappa, Britt received an M.B.A. from the Amos Tuck School of Business Administration at Dartmouth.
In addition, John Finn was selected as presiding director of the board and was also named as chairman of the audit committee, with both appointments effective upon completion of the planned spinoff of CareFusion.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $91 billion, global company serving the health care industry with products and services that help hospitals, physician offices and pharmacies reduce costs, improve safety, productivity and profitability, and deliver better care to patients. With a focus on making supply chains more efficient, reducing hospital-acquired infections and breaking the cycle of harmful medication errors, Cardinal Health develops market-leading technologies, including Alaris® IV pumps, Pyxis® automated dispensing and patient identification systems, MedMined™ electronic infection surveillance service and VIASYS® respiratory care products. The company also manufactures medical and surgical products and is one of the largest distributors of pharmaceuticals and medical supplies worldwide. Ranked No. 18 on the Fortune 500, Cardinal Health employs more than 40,000 people on five continents. More information about the company may be found at cardinalhealth.com.
About the planned CareFusion spinoff
Cardinal Health’s board has approved the spinoff of CareFusion Corp. through a pro rata distribution of at least 80.1 percent of the shares of CareFusion common stock to Cardinal Health shareholders, with Cardinal Health retaining the remaining shares. 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. Cardinal Health will distribute 0.5 share of CareFusion common stock for each common share of Cardinal Health outstanding as of the record date. Shareholders will receive cash in lieu of fractional shares of CareFusion common stock. No action is required by Cardinal Health shareholders as of the record date to receive their shares of the common stock of CareFusion Corporation in the spinoff.
Cautions concerning forward-looking statements
This news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include (but are not limited to) uncertainties and risks regarding the spinoff, including the timing and terms of, and costs associated with, the spinoff, and the impact of the spinoff on Cardinal Health, CareFusion and the potential market for their respective securities. In addition, Cardinal Health, CareFusion and the spinoff are subject to additional risks and uncertainties described in Cardinal Health’s Form 10-K, Form 10-Q and Form 8-K reports and CareFusion’s Form 10 registration statement (including all amendments to those reports and registration statement) and exhibits to those reports and registration statement. This news release reflects management’s views as of August 5, 2009. Except to the extent required by applicable law, neither Cardinal Health nor CareFusion undertakes an obligation to update or revise any forward-looking statement.