Late last year, management at Babcock & Wilcox (BWC) was considering whether or not a breakup of its businesses made sense. Given the company name, it’s no surprise the company opted to produce some progeny and shortly thereafter it announced that it would spin off its power generation business. The new company will be named Babcock & Wilcox… Read More »
Paging Maverick and Iceman. Last June, Masco(MAS) CEO Keith Allman signaled that structural change was afoot. A year later, the company is poised to spinoff its Installation and Services business into TopBuild(BLD). Masco shareholders as of June 19, 2015 will, on June 30, 2015, receive one TopBuild share for every nine Masco shares held. Keith Allman, Masco’s President… Read More »
TriMas(TRS) has had a long and winding road as a company. It originally began life as Campbell Industries, headed up by former Masco(MAS) executive Brian Campbell. Masco backed Campbell and sold many of its smaller manufacturing businesses to Campbell, resulting in a name change to TriMas. TriMas, owned largely by Masco, continued to acquire manufacturing assets until its… Read More »
As previously discussed, Baxter International (BAX) will be spinning off Baxalta (BXLT) after the close of business on June 30. As is often the case with larger spinoffs this will result in some S&P index reshuffling. First, Baxter will no longer be large enough to remain a member of the S&P 100 and will be replaced by Priceline… Read More »
On May 19th, Yahoo’s (YHOO) stock plunged at the close after word leaked that the IRS was reviewing its rules regarding spinoffs. This was big news because Yahoo, after months of prodding by numerous activists, is in the process of spinning off its $30+b stake in Alibaba (BABA). A spinoff will help the company avoid a massive tax bill estimated… Read More »
You may never heard of Baxter International(BAX), but the $37 Billion behemoth may have saved your life. Now, the company is slimming down, as the Board has approved the July 1 spinoff of Baxalta(BXLT). Shareholders of record as of June 17 will receive one share of Baxalta for each Baxter share owned. Baxter will retain 19.5% of Baxalta… Read More »
Integra LifeSciences (IART) unveiled plans to spin off its Spine business into a standalone company late last year. The move was billed as a ‘strategic portfolio realignment’ and part of the company’s ‘larger transformation strategy’ to optimize their businesses and accelerate growth. Roughly eight months later, the SeaSpine spinoff is ready to go and has been approved by the… Read More »
We recently noted some of the progress Gannett (GCI) had been making towards completing the separation of its publishing assets from its broadcasting & digital businesses. There was the awful name – TEGNA – for the rebranded parent company. Then a new board of directors was vetted and selected. Form 10’s were filed. And just last week, finally, the board has… Read More »
The aviation industry is gathered in France for the Paris Air Show. The focus is usually on the orders for industry giants Airbus and Boeing (BA), but this year also featured an interesting announcement from United Technologies (UTX). During its Investor Day presentation, the company confirmed that it would exit the helicopter business, with either a spinoff or… Read More »
Though the majority of Johnson Controls(JCI) revenue derives from its automotive business, there has long been talk of spinning off the unit. Yesterday, the company announced that “it is exploring strategic options for the separation of its automotive business”. Of course, you know which strategic option we are rooting for. “Today’s announcement continues our strategy of proactive portfolio… Read More »
DuPont(DD) has not been lacking in drama, with a famously noisy battle with activist Nelson Peltz. The company is now in the final stretch of its spinoff of Chemours, with a date and ratio set. The stock will be distributed on July 1 to shareholders as of June 23. Shareholders will receive one share of Chemours for every… Read More »
When Federal Mogul Holdings (FDML) first announced that it was separating its Motorparts division from the Powertrain business, the plan was for the spin to be completed in the first half of 2015. The problem was that the company was in the midst of an acquisition boom, acquiring three different businesses – TRW’s engine components, Affinia’s chassis business and… Read More »
A few short hits for the Friday before Memorial Day – A very minor footnote to the abandoned Comcast (CMCSA)/Time Warner Cable (TWC) megadeal is the cancellation of the GreatLand Connections spinoff. The spin would have shed millions of customers in select markets and was part of the two companies’ strategy to win regulatory approval. I think they… Read More »
DuPont (DD) unveiled the future board of directors at its performance chemicals spinoff, Chemour, earlier this week and poor Nelson Peltz didn’t make the cut here either. Surprisingly, the media isn’t covering this board situation in the same manner as last week’s ‘historic’ proxy battle, which witnessed DuPont CEO Ellen Kullman take down Nelson Peltz’s Trian Fund at the ballot box. The… Read More »
By far, the world’s largest mining company, BHP Billiton(BHP) got a bit smaller this week with the spinoff(or demerger, if you prefer) of South32. South32 is a collection of non-core bauxite, alumina, aluminium, thermal and metallurgical coal, manganese, nickel, silver, lead and zinc assets accounting for under 5% of BHP’s 2014 profit. BHP shareholders received 1 share of… Read More »