Danaher(DHR) announced the date for the spinoff of Veralto(VLTO), its water quality and product identification business. Shareholders of Danaher as of September 13, 2023 will receive one share of Veralto for every three shares they own of Danaher on September 30, 2023. The transaction is expected to be tax free to shareholders. Danaher is no stranger to spinoff… Read More »
Fiesta Restaurant Group (FRGI), the parent company of Pollo Tropical restaurant brand, has reached a definitive agreement to be acquired by Authentic Restaurant Brands (ARB), a portfolio company of PE firm Garnett Station Partners. ARB is a holding company with a portfolio of food & beverage brands including P.J. Whelihan’s, Primanti Bros. and Mambo Seafood. Quite a diversified… Read More »
Zimmer Biomet Holdings(ZBH) modestly calls itself “a global leader in musculoskeletal healthcare.” Last week, it announced it will be slimming down, with plans to spinoff its Spine and Dental businesses in mid-2022. With a market cap of over $32 Billion, Zimmer Biomet is anything but a small company. “As part of the third phase of ZB’s ongoing transformation,… Read More »
Catnip? No, TechnipFMC(FTI), we had never heard of the $5B market cap S&P 500 component. Or it will be in the S&P 500 until Friday, February 12, when it is removed in favor of Monolithic Power Systems(MPWR). TechnipFMC, which was formed several years ago by the merger of Technip and FMC, is a global leader in the energy… Read More »
It’s been a while since we last wrote and let’s just say that 2020 has been a rough year. On that note, we sincerely hope our readers are all safe and healthy. Back to business and it’s time to play catch up again… Despite a slowdown during the depths of the crisis, M&A activity picked up as 2020… Read More »
There has long been chatter of a potential General Motors(GM) spinoff of its electric vehicle business. Barron’s reports that Deutsche Bank analyst Emmanuel Rosner, who calls the deal a “no-brainer” would be worth between $15 billion and $95 billion dollars, and not lead to much of a decline in enterprise value for the core business, which trades at… Read More »
It’s time for another edition of Odds & Ends where we share some random articles and pieces that we have been reading… 1. Barron’s is bullish on ‘small-scale conglomerate’ Graham Holdings (GHC) and thinks it’s sorely undervalued on a sum of the parts basis. Although the stock is up about 17% from the date of publishing to ~$423,… Read More »
Smith & Wesson (SWBI) announced the final details of the tax free spinoff of its outdoors and accessories business, American Outdoor Brands. The transaction was approved by its board of directors and on August 24th, shareholders as of August 10th will receive one share of American Outdoors for every four shares of Smith & Wesson owned. The new… Read More »
It’s time for another edition of Odds & Ends where we share some random articles and pieces that we have been reading… 1. Harvard Business School touts Ferrari’s (RACE) exemplary leadership prior to the coronavirus crisis. Some good lessons in there and kudos to Chairman John Elkann and CEO Louis Camilleri for their strong leadership and foresight. Ferrari… Read More »
With coronavirus beginning its worldwide spread in February, France’s Sanofi (SNY) revealed plans to spin off its active pharmaceutical ingredients (API) business into a standalone company. For the sake of layman like us, APIs are the ‘magic’ molecules that make drugs work and according to Sanofi, the vast majority of APIs are currently manufactured in Asia (ex China… Read More »
Business is tough right now, including for some recent spinoffs. While California Resources Corporation was missing interest payments at the end of June, 2016 rural hospital spinoff Quorum Health was just emerging from Chapter 11. The company had been shrinking even prior to coronavirus and it was even forced to shutter and sell off numerous hospitals. From the… Read More »
Time for another edition of Odds & Ends… 1. Yet Another Value Blog has a follow up piece to its initial recommendation of Kontoor Brands (KTB), the 2019 jeans spinoff from VF Corp (VFC). The company initially recovered from the usual post-spin dynamics, but has been hit especially hard this year. Interestingly, according to YAVB one reason is… Read More »
The saga surrounding California Resources Corporation (CRC) finally reached a conclusion last week with the company agreeing to a pre-arranged Chapter 11 package with its creditors. As we have previously reported, the company missed a few recent interest payments beginning the seemingly inevitable slide into bankruptcy. CRC negotiated a forbearance agreement (along with several extensions) while working the… Read More »
Highlighting the Barron’s Roundtable’s spinoff picks is always one of our most popular pieces every year. Sadly, we missed it earlier this year, but Barron’s does publish a midyear check in every July. It’s not as comprehensive as the beginning of the year Roundtable gathering, but it still features some talk about the economy, predictions for the market… Read More »
Another deadline and another forbearance extension for California Resources Corporation (CRC). For at least the third time over the past month the California based oil producer (and OXY spinoff) was able to buy some additional time from its lenders on its missed interest payments. The new deadline is now July 12th…a mere four days later. The forbearance periods… Read More »