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 »
It may be a new year, but we are reviving our series of popular Odds and Ends pieces. In this end of week edition, we hear from CEOs of spin off related companies. The buck has to stop somewhere so why not hear it straight from the top? The WSJ recently featured a chat with Ed Breen, the… Read More »
Happy New Year to all of our readers! 2018 is now officially history and it will be remembered as a year of increased volatility that ultimately left some portfolios quite damaged. That includes Mohnish Pabrai’s Spinoff Portfolio and its (backtested) historically S&P crushing results. Pabrai is a legendary fund manager and author of The Dhando Investor. In one of… 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 »
Genuine Parts Company (GPC) announced last month that it will spin off its business products division, S.P. Richards, and immediately merge the new entity with Essendant (ESND) via the tax efficient Reverse Morris Trust. The deal will allow GPC to more fully focus on its ‘core’ automotive (via NAPA) and industrial products, areas in which it has been… Read More »
Grab your cup of coffee and kick off the week with some Odds and Ends: Late last year, Pfizer (PFE) announced it was considering its ‘options’ for its consumer health division. The early buzz was all about a sale though and the maker of Advil and Centrum has since been running a sales process with a rumored desired… Read More »
Tenneco (TEN) has agreed to purchase Federal Mogul from Carl Icahn for the hefty price of $5.4b. The total tag includes the assumption of debt and a mix of both cash and stock. Mr. Icahn is expected to remain a shareholder of Tenneco into the future and will own approximately 36% of the company. The deal is expected to… Read More »
Grab your coffee and get over hump day with a helping of idle spinoff speculation in this edition of Odds and Ends. Who knows? Maybe these spins could be coming to your portfolios one day soon! Morgan Stanley’s Adam Jonas thinks GM (GM) should spin off its Cadillac business. He thinks it could be worth $15b as a… Read More »
Pentair’s (PNR) completed the spinoff of its electrical business, nVent Electric (NVT), after the close yesterday. The new company will commence trading on the NYSE today and shareholders should have received one share of NVT for every PNR share owned. Pentair CEO John Stauch wished his colleagues at nVent much ‘success’ and believes Pentair is now ‘well positioned… Read More »