Squibb Spins Off Medical Systems Business
PRINCETON, N.J. (AP) _ Squibb Corp. announced Wednesday that it intends to spin off its medical systems business to its stockholders.
The business is made up of Advanced Technology Laboratories, a manufacturer of ultrasound imaging equipment; Spacelabs Inc., a producer of patient- monitorin g products; and Squibb Medical Systems, a manufacturer and distributor of ultrasound equipment.
The new business will be named Westmark International Inc. and will be based in the Seattle suburb of Bothel. Its chairman and chief executive officer will be Dennis C. Fill, who has been Squibb Corp.’s president and chief operating officer since 1978.
Richard Furland, Squibb’s chairman and chief executive officer, said Westmark is a ″profitable, well-financed and debt-free company.″ He said Westmark will be able to grow more easily than would be possible as a Squibb subsidiary. Squibb then will be able to focus on its other businesses, he added.
Squibb said the spinoff would be tax-free to Squibb stockholders, with Squibb retaining about 10 percent of the common stock interest in the new entity.
The business is expected to be spun off in the fourth quarter of this year, Squibb said. Details of the date and number of shares to be distributed will be announced then.