The ‘Summer of Spin’ rolls on and yesterday witnessed the completion of three more spin offs:
- Masco (MAS) separated its installations and services into TopBuild (BLD)
- TriMas (TRS) spun off its former Cequent units as Horizon Global (HZN)
- Babcock & Wilcox (BWC) changed its name to BWX Technologies (BWXT) and spun off its power generation unit as Babcock & Wilcox Enterprises (BW). The WSJ had an interesting piece yesterday on the company examining the forced leading to the spinoff and the company’s outlook. Additionally, it highlighted the shuttering of the company’s mPower unit which develops modular reactors. The company sunk a lot of money into the venture and it seems like there will be no payoff for investors.
The first day of trading is turning out to be a mixed bag for the new companies, but I wouldn’t assign any meaning to that. As of midday, both TopBuild and Horizon Global are down ~5%, while the new Babcock & Wilcox Enterprises is up over 3%. Lets see where they end up closing. Looking at Monday’s spin, TEGNA (TGNA) is up a few percent while the new Gannett (GCI) is down over 3%.
Today features a fresh and large batch of spinoffs:
- DuPont (DD) will spinoff its performance chemicals unit (including Teflon) into Chemours (CC)
- Energizer (ENR) will separate its personal care unit, Edgewell Personal Care (EPC), from its household products business
- Baxter (BAX) will spinoff its pharma business Baxalta (BXLT)
- NiSource (NI) will keep its utility business and shed its other assets into the Columbia Pipeline Group (CPGX)
- Intergra (IART) is spinning off its spine business SeaSpine (SPNE)
- Graham Holdings (GHC) continues its radical transformation with the spinoff of Katherine Graham’s ‘best acquisition’ Cable ONE (CABO)
Hard to keep up with all of this excitement!
Disclosure: Author holds no position in any stock mentioned.