Columbia Business School publishes an investment newsletter featuring ideas from students and interviews with asset managers. The Winter 2017 edition of the aptly titled Graham and Doddsville was just published and it features a conversation with the managers (incidentally both alums) of Kingstown Capital, a value oriented, special situations focused fund. The interview includes the G&D standard ‘how did you… 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 »
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 »
Shareholders at both Johnson Controls (JCI) and Tyco (TYC) overwhelmingly approved their upcoming merger at their respective special shareholder meetings last week. At JCI, the approval came in the fact of a shareholder lawsuit challenging the company’s executive pay (JCI CEO Alex Molinaroli is making out like a bandit in this deal) and other facets of the deal.… Read More »
After discussing the importance of a spinoff’s tax free nature the other day, of course, there is a big spinoff on the horizon which will be treated as a taxable dividend for shareholders. Due to complications arising from its merger with Tyco (TYC), Johnson Controls’ (JCI) automotive and interior business spinoff will indeed be taxable upon its separation… Read More »
Grab a tissue and say farewell to the Tyco (TYC) name. The former high flying conglomerate has a complicated history full of acquisitions (lots of those), strategy shifts, scandal ($6,000 shower curtains!) and of course, a lot of spinoffs. Current DuPont (DD) CEO Ed Breen smashed the company apart not once, but twice, creating three entities in both… Read More »
Despite ascending to the top role at Johnson Controls (JCI) less than two years ago, Alex Molinaroli has certainly made his mark on the historic auto supplier. He sold off both its electronics and workplace staffing businesses and also put its interiors business into a JV with China’s Yanfeng Automotive. Not satisfied, Mr. Molinaroli then announced the company… 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 »
Rumor (according to Bloomberg) is that Visteon (VC) is considering a breakup into two companies, with one entity focused on its electronics unit and the other on its climate business. The move shows just how far Visteon, itself a spinoff from Ford Motor (F) back in 2000, has come since seeking bankruptcy protection just five years ago. As part… Read More »
Earlier this year, we mentioned analyst rumblings that Jonhson Controls(JCI) ought to spin off its automotive seating business. Now, the company has decided to undertake a major move, but not the one suggested. Johnson will be spinning off its auto interiors business into a joint venture with a subsidiary of Chinese auto maker SAIC. Johnson will own 30%… Read More »
Breakups and spinoff ideas are forming everywhere. The WSJ had an article this past weekend discussing a possible spinoff of Johnson Controls’ (JCI) seating business. JCI operates three different business segments – building efficiency, auto supply and power supplies (batteries) – with auto supply, which includes seating, being the largest segment in terms of revenue. The company has a strong… Read More »