Thanks very much for the great answer Andy. Really appreciate it.
Regarding the sub-domain versus separate domain route, it was a hard decision. We want each of the four websites to feel like definitive specialist businesses, and in that case treat the 'main website' as more of a 'corporate site/main site'. I guess it could be regarded that each website could almost be 'sold off' as a separate business. i understanding your comments about strengthening the brand. All the url have our main name as part of the url, and our logo is on each site, along with a different colour scheme. or did you mean more that Google will give much more punch to the subdomain option?
The information in your google webmasters link about canonicals is from 2009, and very informative and relevent.. I guess it is still current? The main website of the group has about 10000 different products on it, and each product/sku has a different url. Would this mean that i would have to create a canonical for up nearly 10000 entries x 4 websites, back to a preferred url? Can I instead do Product Category urls? (i would love the option to send the category "Bandages" to the healthcare site by canonicals, even though it is on 3 of the sites)
Is there an efficient way to do the canonical in bulk? or should i just concentrate on the top selling products? What penalties could apply because i don't manage to get them all done in a timely manner?
Thanks in Advance!!