Nearly three years after its April 2014 spinoff from Sears Holdings(SHLD), Lands’ End(LE) is fairing only marginally better than its former parent, which is teetering on the edge of bankruptcy. Lands End, which just after its spinoff had a market capitalization of $900 million, is worth just $485 million today. The company has nearly $500 million in long… Read More »
A decade after a divorce, a couple strongly considers getting back together, only to call it off. The plot of It’s Complicated? No, the latest in the saga of Viacom(VIA) and CBS(CBS). At the very end of 2005, Viacom and CBS split into two independent companies. Late this summer, as Shari Redstone cemented her control over her father… Read More »
Varian Medical Systems (VAR) is currently in the process of spinning off its imaging component business, Varex Imaging. As part of the transaction, Varex will now send Varian a $200m parting ‘gift‘ (or dividend) to be funded by new borrowings. According to Varian’s CEO Dow Wilson, ‘the Imaging Components business has gained momentum since last May when we… Read More »
There is just something exciting about a three-way split. It’s just such a radical transformation and in some ways it’s hard to believe that a company like hotelier Hilton Worldwide (HLT) could pull it off. ITT sure, but Hilton? January 3rd is the day though when Hilton will officially spin off a) Hilton Grand Vacations, its timeshare business… Read More »
The year is coming to an end and it’s really cold outside. Warm up and start your weekend with a few spinoff related links: The always excellent Value and Opportunity took a close look at the recent spinoff of Italian gas distributor Italgas (IG.MI) from SNAM spa (SNMRF). In his opinion, although there is real risk in the name,… Read More »
The Overseas Shipholding Group (OSG) completed the taxable spinoff of International Seaways (INSW) on schedule last week. On November 30th, OSG shareholders should have received 0.3333 shares of INSW and the first day of trading was on December 1st. As discussed in our earlier piece, the situation for warrantholders was slightly different. As per usual, the internal goodwill was… Read More »
It’s not surprising to see companies experienced with spinoffs go back to the same playbook, but Varian Medical System’s (VAR) upcoming Imaging Components spinoff is still a bit surprising. After all, it’s been 17 loooong years since Varian Associates broke itself into three different parts, including Varian Medical Systems. The new business will be named Varex Imaging Systems and… Read More »
To everything there is a season, and the season for magazines has passed and will not return. In the summer of 2014, Time Warner(TWX) spun off Time, Inc.(TIME), its magazine publishing division. Joe Ripp, the CEO who presided over the spinoff, valiantly tried to cut costs and move to digital, but his efforts fell short. This summer, he… Read More »
Overseas Shipholding Group(OSG) is in the process of spinning off its International Flag business, International Seaways. On November 30, OSG shareholders will receive 0.3333 shares of International Seaways common stock for each share of OSG held on November 18. In addition, holders of OSG warrants will receive approximately .06332 shares per warrant held. International Seaways, which is already trading… Read More »
On November 1, Alcoa(AA) completed its spinoff from the former Alcoa, now named Arconic(ARNC). The new Alcoa is “is a globally cost-competitive industry leader in bauxite, alumina and aluminum products, positioned to succeed throughout the market cycle.” “We are launching Alcoa Corporation as a world leader in the aluminum industry with distinct competitive advantages across the value chain,”… Read More »
Johnson Controls (JCI) completed its inversion deal/merger with Tyco in early September creating a powerhouse in building solutions for efficiency and fire and safety. With the merger complete, the company can now complete the spinoff of its non-core automotive and interiors business, Adient. The spin was announced way back in 2015, but rumors of a spin existed even earlier.… Read More »
HCP ‘s (HCP) board of directors approved the spinoff of Quality Care Properties, a REIT whose portfolio is comprised of skilled nursing and assisted living facilities. At the time of the spin announcement, Quality Care Properties, which was previously known internally as HCR ManorCare, was expected to own over 320 properties with estimated annual rent of about $485… Read More »
There are a number of spinoffs scheduled to be completed at the end of this month (October) or in early November and naturally, there are a few scheduled changes to the S&P indices as a result. Here is a summary of the changes which will occur over the next week or so: HCP Inc (HCP) is spinning off Quality… Read More »
It’s no surprise that many recently announced spinoffs have been abandoned in favor of outright sales. Possible reasons include the fact that numerous industries are suffering from a lack of organic growth or the fact that these bite size carve out pieces are more easily acquired. Oh yeah, it also helps when acquirers toss around rich valuations. The… Read More »
You may have noticed a lull in our regular programming and for that we apologize. Over the past few weeks, a number of spinoff transactions have closed leading to quite a few shifts within the S&P indices. Here is a summary of the various transactions: Honeywell’s (HON) AdvanSix (ASIX) spinoff was distributed on October 1st and the new company… Read More »