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Press Releases
SAN DIEGO, May 13, 2009 – CareFusion Corporation, the company that will become public from the planned spinoff of Cardinal Health’s clinical and medical products businesses, today announced that Edward J. Borkowski has been named chief financial officer (CFO).
Borkowski, 49, has been CFO of Mylan, Inc. since 2002 where he helped transform the company from a U.S.-based generic business to one of the largest generic pharmaceutical companies in the world, operating in more than 60 countries. During his tenure at Mylan, the company grew revenue from $900 million to more than $4.5 billion through the combination of organic growth and acquisition, including a $7 billion acquisition of Merck Generics in 2007. Borkowski also played a key role in Mylan’s acquisition of Matrix Laboratories in 2006, the largest acquisition in India’s pharmaceutical sector at the time. He will start with CareFusion on May 26.
“Ed has a proven record of identifying growth opportunities and executing against them with very positive results for shareholders,” said David Schlotterbeck, chief executive officer of CareFusion.
“He will be a key contributor to our management team as we execute our strategies for growth.”
Prior to Mylan, Borkowski was vice president of global finance and information technology of consumer health care at Pharmacia Corporation. Through his various leadership positions with Mylan, Pharmacia and American Home Products Corporation, Borkowski has gained broad knowledge of the health care industry, with deep experience in corporate finance, treasury, tax, business development, information technology and operations. He earned his Bachelor of Science degree in economics and political science from Allegheny College and holds an MBA from Rutgers University.
Cardinal Health’s target is to complete the planned spinoff later this summer. Completion and specific timing of the planned spinoff will depend on a number of factors, including the Form 10 being declared effective by the SEC and the Cardinal Health board of directors declaring a dividend of CareFusion stock to Cardinal Health shareholders. Other conditions to completing the planned spinoff include receipt of a ruling from the Internal Revenue Service that the spinoff will qualify as a tax-free transaction, CareFusion securing the necessary debt financing and both companies’ debt being rated as investment grade. The satisfaction of some conditions will depend in part on credit market conditions at the time of the required financial transactions. No assurance can be provided as to the timing of the planned spinoff or that all conditions to the planned spinoff will be met.
About CareFusion Corporation
CareFusion Corporation is currently a wholly owned subsidiary of Cardinal Health (NYSE:CAH) and is expected to become a public company from the planned spinoff of Cardinal Health’s clinical and medical products businesses. The global company is expected to have annual revenues approaching $4 billion1 and will serve the health care industry with products and services that help hospitals improve the safety and quality of health care. With a focus on breaking the cycle of harmful medication errors and reducing hospital-acquired infections, CareFusion develops market-leading technologies including Alaris® IV pumps, Pyxis® automated dispensing and patient identification systems, MedMined™ electronic infection surveillance service, AVEA and Pulmonetic Systems ventilation and respiratory products, Jaeger and SensorMedics pulmonary products, ChloraPrep® infection prevention products and V. Mueller® surgical instruments. CareFusion employs more than 15,000 people across its global operations. The company intends to apply to have its shares of common stock listed on the New York Stock Exchange under the ticker symbol “CFN.”
1 The estimate of the pro forma revenue for the clinical and medical products company that is expected to be spun off is an estimate of the revenue for CareFusion for the 12 months ending June 30, 2009 in accordance with generally accepted accounting principles and includes adjustments expected to reflect CareFusion as a stand-alone entity. This estimate is based on Cardinal Health’s previously announced revenue expectations for fiscal 2009 and on assumptions that management currently believes are reasonable, but actual revenue for CareFusion may vary materially from this estimate.
Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing the planned spinoff of Cardinal Health’s clinical and medical products businesses as a separate company named CareFusion, the divestiture by Cardinal Health of any retained shares of CareFusion, and the expected financial results of CareFusion after giving effect to the spinoff, each of which is 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 uncertainties regarding the planned spinoff of CareFusion, including the timing and terms of any such spinoff and whether such spinoff will be completed as it is subject to a number of conditions, the timing of the divestiture of any shares of CareFusion retained by Cardinal Health and uncertainties regarding the impact on CareFusion and the market for its securities if the spinoff is accomplished. In addition, Cardinal Health and CareFusion are subject to additional risks and uncertainties described in CareFusion’s Form 10 and Cardinal Health’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) and exhibits to those reports. Except to the extent required by applicable law, Cardinal Health and CareFusion undertake no obligation to update or revise any forward-looking statement.