Calling all spinoff lovers – it’s time to get your hard hats on because the end of this month is going to be crazy. Just call it the ‘Summer of Spin’. In the somewhat improbable five plus years we have been running this site (and I am willing to bet over the course of history), there has never been a period comparable to what is coming over the next couple of days. There are ten, yes 10, spinoffs set to be completed at the end of this month and quarter (June 30th/July 1st). Our previous record was three in a day, but that happened so many times that it was nothing special. This though reminds me of this great commercial. Perhaps a sign of a spinoff bubble?
While you can obviously just check out our Upcoming Spinoff calendar, here is a handy list of what is coming:
June 30th:
- Gannett (GCI) will spin off its publishing assets into New Gannett and change its name to TEGNA (TGNA)
- Masco (MAS) will separate its installations and services into TopBuild (BLD)
- TriMas (TRS) will spin off its former Cequent units as Horizon Global (HZN)
- Babcock & Wilcox (BWC) will change its name to BWX Technologies (BWXT) and spin off its power generation unit as Babcock & Wilcox Enterprises (BW)
July 1st:
- After defeating Trian Partners in a dramatic proxy battle, DuPont (DD) will spinoff its performance chemicals unit (including Teflon) into Chemours (CC)
- Energizer (ENR) will separate its personal care unit,Edgewell Personal Care (EPC), from its household products business
- Baxter (BAX) will spinoff its pharma business Baxalta (BXLT)
- NiSource (NI) will keep its utility business and shed its other assets into the Columbia Pipeline Group (CPGX)
- Intergra (IART) is spinning off its spine business SeaSpine (SPNE)
- Graham Holdings (GHC) continues its radical transformation with the spinoff of Cable ONE (CABO)
Nearly all of the new companies will enter the S&P 500, Midcap 400 or Smallcap 600 so there should be plenty of potential new investments to study for all different types of investors. It might be interesting to track this ‘Summer of Spin’ group over the next 3, 6, 12, 24 and 36 months – we will keep you updated on that front. The best part of all is that the pipeline is still strong. Happy hunting!
Disclosure: Author holds no position in any stock mentioned.