Sometimes, businesses that begin based on natural synergies grow apart. This appears to be the case with Alliance Techsystems(ATK). The company has three divisions: Aerospace, Defense, and Outdoor Sports. This once made a great deal of sense, as the ammunition the company sells to the military is a similar product to the ammunition it sells to hunters. As… Read More »
CBS Corporation (CBS) continues to make progress in its three step plan for outdoor advertising company CBS Outdoor Americas (CBSO). The first milestone was achieved last month with CBSO’s successful IPO and now CBS has received a favorable private letter ruling from the IRS regarding the conversion of CBSO into a REIT. According to CBS CEO and President Les… Read More »
You probably have not heard of Hop-On(HPNN). After all, its share price is so small, it shows up as 0.00 on Yahoo Finance. Unlike many such companies it appears to actually have a little revenue(793K in 2013), though it is unclear exactly what it is from. Recently, the company took a break from its usual bizarre rants Market… Read More »
Another week, another heavily leveraged spin from Eddie Lampert. Just last week, Sears Holdings(SHLD) shareholders received shiny new shares in Lands’ End(LE). But Sears received a bigger gift- $500 million in cash paid as tribute by the new company. Lands’ End, like many Sears and Kmart customers, borrowed heavily to give this gift and now will be constrained… Read More »
The excitement level was high when Exelis (XLS) announced that it would create a new ‘brand’ for its upcoming military and government services spinoff. To better understand why, lets jump back a few years and remember how the name Exelis came about: ITT Exelis is an energetic name that is derived from the word “excel,” which is rooted… Read More »
Land’s End (LE) is now in control of its own destiny. The well-known retailer was spun off from Sears Holdings (SHLD) after the close on Friday and began trading regular way on Monday. Sears shareholders should have received 0.300795 shares of LE for every SHLD share owned. Investors haven’t been too thrilled with the new company and shares… Read More »
Just a few months after spinning off its low margin paper and pulp automation business, Metso (OTC:MXCYY) confirmed that it received an ‘unsolicited approach’ from the Weir Group (OTC:WEIGY) about a possible combination. Although the financial terms of the offer were not released, Metso’s shares still spiked over 20% after the rumors came out. Weir’s Board believes that ‘there… Read More »
Roughly a year ago CBS Corp (CBS) decided to shed its outdoor units. Its Asian & European units would be divested and were ultimately sold to private equity firm Platinum Equity for an estimated $225m last fall. The company had grander plans for its North American outdoor segment though. Much grander plans, including an IPO, followed by a spinoff… Read More »
There’s much value to be found in spins, but not every spin is a winner. That’s the reminder from YCharts’ Jeff Bailey, who took a recent look at ADT’s(ADT) “alarming” performance. Despite a strong, post-spinoff start, the company plunged and has underperformed on poor earnings. in October 2012, and after an initial rally ADT shares turned down. Cable… Read More »
The dance is finally over and Safeway (SWY) has found its suitor. After a lot of speculation, the grocer agreed to be acquired by Cerberus owned Albertson’s for ~$9b. While that would normally put the company in the hands of merger arbitrage players, the company still has some unfinished spinoff business. Back in 2012, the company announced plans… Read More »
After following the space for a few years, you start to notice a few companies which are best described as ‘serial spinners’. These companies have a rich history of spinoffs and some have even passed that tradition on to their kids leading to a few ‘grandchildren’. It would be interesting to come up with a ‘Spinoff Power Rankings’… Read More »
It’s been two and a half years since Xylem (XYL) was spun off from ITT Corp (ITT). Not a long time, but long enough for the company to hire its third CEO. Gretchen McClain, the CEO at the time of the spinoff, resigned abruptly last September amid poor results, and was replaced on an interim basis by Steven… Read More »
We’ve been quite remiss in not discussing Darden’s(DRI) plan to spinoff Red Lobster and the ongoing activist fight over the company’s direction. Both Barrington Capital with 2.8% of the company and Starboard Value, with 5.5%, have been sparring with the firm. Barrington had proposed that the the firm separate its low-growth brands, Red Lobster and Olive Garden, from… Read More »
Dover Corporation’s (DOV) spinoff of Knowles is set for tomorrow and S&P recently announced the resulting changes to its indices. Dover will remain in the S&P 500, but post-spin, Knowles will ‘drop’ to the S&P Midcap 400 where it will replace Apollo Investment (AINV). Interestingly, Apollo is getting the boot due to S&P’s new methodology rules excluding business development companies from… Read More »
That didn’t take long. Just a month after first publicizing his position, Carl Icahn fired another salvo in his campaign to break off PayPal from EBay (EBAY). Mr. Icahn sent an open letter to EBay shareholders informing them that he has uncovered ‘multiple lapses in corporate governance’ at the company and that ‘the complete disregard for accountability at eBay is… Read More »