Author Archives: Inelegant Investor
Not for the first time, Alibaba(BABA) graces our pages with news of a cancelled spinoff. Back in 2015, it was Yahoo’s planned spinoff of Aabaco Holdings that was cancelled, due, in large part, to IRS opposition to the transaction being tax free. Aabaco would have been a vehicle to take Yahoo’s valuable Alibaba stake and move it into… Read More »
We’ve known for some time that 3M(MMM) would be spinning off its healthcare business next year in the first half of 2024. Now we know its name: Solventum. Solventum, of course, in honor of 3M’s legendary founder James E. Solventum III. No, of course not, Solventum because a branding agency was paid way too much money to mash… Read More »
With a goal of becoming “a pure-play, profitable neuroscience company”, on November 15, Alkermes(ALKS) spun off its oncology business as Mural Oncology(MURA). In the tax free spinoff, Alkermes shareholders as of November 6 received one share of Mural for every ten shares owned. According to BioPharma Dive, the $275 million in cash that Mural has to start with… Read More »
Novartis (NVS) is not new to these hallowed pages. Longtime readers (and we appreciate you not pointing out our long absence) will recall that Novartis spun off Alcon(ALC) in April 2019. Last week, however, Novartis completed one of the final steps in its upcoming Sandoz(SDZ) spinoff. At a (fairly ordinary) extraordinary shareholder meeting on September 15, 2023, Novartis… Read More »
Foodservice giant Aramark (ARMK) announced that its Board has approved the spin off of its Uniform and Workplace Supplies business, to be named Vestis (VSTS). Shareholders of Aramark as of September 20th will receive one share of Vestis for every two shares of Aramark owned. The transaction will be completed on September 30, 2023, with the first day… Read More »
Danaher(DHR) announced the date for the spinoff of Veralto(VLTO), its water quality and product identification business. Shareholders of Danaher as of September 13, 2023 will receive one share of Veralto for every three shares they own of Danaher on September 30, 2023. The transaction is expected to be tax free to shareholders. Danaher is no stranger to spinoff… Read More »
Zimmer Biomet Holdings(ZBH) modestly calls itself “a global leader in musculoskeletal healthcare.” Last week, it announced it will be slimming down, with plans to spinoff its Spine and Dental businesses in mid-2022. With a market cap of over $32 Billion, Zimmer Biomet is anything but a small company. “As part of the third phase of ZB’s ongoing transformation,… Read More »
Catnip? No, TechnipFMC(FTI), we had never heard of the $5B market cap S&P 500 component. Or it will be in the S&P 500 until Friday, February 12, when it is removed in favor of Monolithic Power Systems(MPWR). TechnipFMC, which was formed several years ago by the merger of Technip and FMC, is a global leader in the energy… Read More »
There has long been chatter of a potential General Motors(GM) spinoff of its electric vehicle business. Barron’s reports that Deutsche Bank analyst Emmanuel Rosner, who calls the deal a “no-brainer” would be worth between $15 billion and $95 billion dollars, and not lead to much of a decline in enterprise value for the core business, which trades at… Read More »
Solar power is hot right now on the heels of yesterday’s announced deal for Sunrun(RUN) to buy Vivint Solar(VSLR). SunPower(SPWR), another major solar power player, is moving forward with its plan to spin off the international portion of its technologies business as Maxeon Solar Technologies. Towards that end, the company filed its Form 20-F registration statement last week.… Read More »
Smith & Wesson(SWBI)- it’s one of the most storied names in firearms, and, as of June 1, it’s the name not just of a brand, but of a company as well. In preparation for a late summer spinoff, American Outdoor Brands Corporation(AOBC), changed its name to Smith & Wesson Brands, Inc. The American Outdoor Brands name is not… Read More »
We’ve been remiss before, and now we’ve been … reremiss? A Google index update left us somewhat disheartened, life intervened and our unplanned hiatus dragged on for months. Our once proud site became a Haunted Mansion as spinoffs spun and reverse morrises trusted. Our tenth anniversary came and went unremarked(find our unimpressive first post here) as in a… Read More »
DuPont(DD) has been no stranger to spinoffs. Following the 2015 spinoff of Chemours(CC), DuPont merged with Dow Chemical in preparation for a three-way split executed earlier this year, leaving DuPont, Dow Chemical(DOW) and Corteva(CTVA) as independent companies. But there is no rest for the weary. Citigroup analyst P.J. Juvekar believes there is more to come. “We expect DuPont… Read More »
With its stock in freefall, Mallinckrodt(MNK) announced plans to move forward with a spinoff announced late last year. Mallinckrodt stock, which traded for over $130 per share in March 2015, was $62.58 when we wrote about it in November 2015, and $18.67 when we discussed it in December 2018. In the last 6 months, it has fallen another… Read More »
A recent piece in Barron’s notes that “Sanford Bernstein analyst Jonas Oxgaard recently called the DowDuPont merger and 3-way split the “most complicated action in corporate history.”” It goes on to note, regarding the scale of the transactions: Oxgaard’s claim is difficult to verify, but it doesn’t feel far from the truth. Consider, legacy-Dow and legacy-duPont announced their intention to form the largest… Read More »