What is the meaning of this phrase A company spun out of another?

All large companies have "pilot" or experimental companies which may or may not develop into something else. If this small subsidary embarasses, grows-up or other reason, the owning company may openly or secretly, willingly or not, to then legally be seen to separate from the parent company. The other spun-off company is created when ex-employees of the parent company legally create a seemingly or real independent company.