Ingersoll-Rand (IR) completed the spinoff of its commercial and residential security business, Allegion (ALLE). The new company started trading today on the NYSE and IR shareholders should have received 1 share of ALLE for every 3 shares of IR owned. The new company is expected to have revenues of over $2b and EBITDA of over $400m. For much more additional information on the company, check out our earlier articles here and here, this presentation from its recent Investor Day and its latest Form 10 filing.
Those hoping for an attractive entry price due to forced selling as a result of an index change will be disappointed as Allegion will join the S&P 500 along with its parent. The company will replace struggling retailer J.C. Penney (JCP) which will drop to the S&P Midcap 400 index, where it will replace Aeropostale (ARO).
Disclosure: Author holds no position in any stock mentioned.
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- Ingersoll Rand Sets Allegion Spinoff For December (stockspinoffs.com)
- Allegion Debuts as Public Company Following Spinoff from Ingersoll Rand (virtual-strategy.com)
- So Long J.C Penney, the S&P 500 Will Miss You (blogs.barrons.com)