Author Archives: Inelegant Investor
In 2015, under pressure from legendary activist investor Carl Icahn, eBay(EBAY) chose to spin off PayPal(PYPL). While PayPal stock has performed remarkably since the spin-off, eBay stock’s performance has been decidedly prosaic. With this backdrop, not one, but two activist investors have entered the stage and begun pushing for changes. Of course, most relevant to us is that… Read More »
With apologies to the Beatles: Yesterday, Arconic’s stock price began to fade away An expected buyout had been pushed away Elliott needs to find another way It was this close to a deal, but Arconic(ARNC) announced yesterday that it was no longer pursuing a sale of the company. Last week, the Wall Street Journal had reported that a… Read More »
Just last week, Henry Schein(HSIC) announced the distribution date for its spinoff and Reverse Morris Trust transaction of Covetrus(CVET). Yesterday, the company announced a three day delay in the distribution due to the ongoing government shutdown. Whereas the company had formerly expected its registration to be effective on January 28, it now anticipates it will be effective no… Read More »
As we mentioned when Danaher(DHR) completed its spinoff of Fortive(FTV) in 2016, it has been one of the best performing stocks in history. Founded by Steven and Mitchell Rales, Danaher Corporation(DHR) is one of the most successful business stories of the last three decades. One of just 44 companies with a cumulative total return of greater than 10,000% over… Read More »
Just weeks after choosing its name, Covetrus(CVET), not covfefe, and filing a registration statement, Henry Schein(HSIC) has set a date for the spinoff, and it’s soon. On February 4, Henry Schein will spin off HS Spinco to shareholders of record as of January 17. HS Spinco will subsequently merge with Direct Vet Marketing, Inc. (d/b/a Vets First Choice) in… Read More »
With the new year, a new start for Arlo Technologies(ARLO) as NETGEAR(NTGR) distributed the 84.2% of the company that it still owned to its shareholders on December 31. NETGEAR shareholders received 1.980295 shares of Arlo stock for every share of NETGEAR stock held. Also, concurrent with the transaction, NETGEAR’s founder, Chairman and CEO, Patrick C.S. Lo, resigned from the… Read More »
Perrigo Company(PRGO) is another company with a spinoff heritage returning to our pages. Back in 2013, Perrigo acquired the Elan Corporation for $8.6 billion. Elan had completed its spinoff of Prothena(PRTA) in late 2012. Perrigo subsequently sold the Tysabri royalty stream acquired with Elan to Royalty Pharma for up to $2.85 billion. Today, Perrigo’s market capitalization stands at… Read More »
It was just last week that the world first heard the name Covetrus. This week, Henry Schein(HSIC) filed a registration statement for HS Spinco, the Animal Health business it will be spinning off to merge in a Reverse Morris Trust transaction with Vets First Choice to form Covetrus. Covetrus stock is expected to trade on NASDAQ under the… Read More »
Back in April, Henry Schein, Inc.(HSIC) announced that it would be spinning off its Animal Health business and merging it with Vets First Choice in a Reverse Morris Trust transaction. At the time, the company projected the transaction would be completed in the fourth quarter of 2018, but it has since slipped into the first quarter of 2019. … Read More »
Five months after it floated 15.8% of Arlo(ARLO) in an IPO, NETGEAR(NTGR) will be spinning off its remaining stake to shareholders. For each share of NETGEAR held on December 17, shareholders will receive 1.980295 shares of Arlo common stock on December 31. The transaction is expected to be tax free to shareholders. Arlo has struggled since its IPO… Read More »
VF Corp(VFC) will be spinning off its denim business in the first half of next year. The business includes such venerable brands as Wrangler and Lee. So when the company needed a name for the new independent entity, the choice was obvious. Bypassing such staid and uninspired choices as Wrangler or Lee, the company chose Contour. Or rather,… Read More »
Well over a century ago, brothers Gustav, Otto and Edward Mallinckrodt founded a chemical company. Today, the company that still bears their name plans a spinoff to try to recreate some of the value that has been lost in the last few years. Mallinckrodt(MNK) today is a second generation spinoff. Grandfather Tyco executed a spinoff of Covidien in… Read More »
In the latest episode of Tribune Publishing’s(TPCO) long running drama, the company formerly known as Tronc has rejected a $16.50 bid from McClatchy(MNI), Bloomberg reports. After ending its conflict with shareholder Patrick Soon-Shiong by selling him the Los Angeles Times in June for $500 million, the company, mercifully, changed its name back to Tribune Publishing in October. Tribune Publishing… Read More »
Last year, we discussed Pentair’s(PNR) spin off of nVent(NVT) and commented on how much the strange capitalization was likely to add to the value. With the spinoff now set for the end of the month, it turns out that Pentair gave nVent more than just a bad name. As we had speculated, nVent borrowed $1 billion and will… Read More »
It’s a part of the economy that is not visible to many consumers, but if you have ever bought a used car, there is a good chance it passed through KAR Auction Services(KAR) at some point. Last year, the company sold approximately 5.6 million vehicles at auction. KAR consists of two distinct auction businesses. Adesa, its wholecar auction… Read More »