What is one thing that both real estate brokers and shareholders really love? A BIDDING WAR! That’s right, M&A is heating up and surprisingly it’s a packaged meat company that is at the heart of the recent excitement. The action all started a few weeks ago when Hillshire Brands (HSH) announced that it would acquire Pinnacle Foods(PF) at… Read More »
This week is quite a busy week in the spinoff world. The action started yesterday with the completion of Simon Property Group’s (SPG) spinoff of the Washington Prime Group. The new company will hold interests in 98 retail assets including Simon’s strip center business and select, smaller malls. The new company, a REIT, is trading under the ticker ‘WPG‘… Read More »
Exelis (XLS) is currently in the process of spinning off its government services business, Vectrus. The spin is expected to be completed sometime this summer and Barron’s ran a piece a few weeks ago suggesting that the parent company has a lot of upside at its current levels: The remaining company will be a pure-play defense electronics business, aligned… Read More »
What to do when a majority of your shareholders support calling a special meeting before you divest an important asset? Go ahead, ignore them, and do what you want, says Darden(DRI). With the $2.1 billion sale of Red Lobster a fait accompli, despite strong opposition from holders, Starboard Value has stepped on the gas in its attack. While… Read More »
Every Spring in Chicago gives birth to new hope that this year will be different. It is rarely long, however, before hopes for this year are dashed and talk shifts to a focus on rebuilding for next year. We are not talking about the Cubs, but rather about iconic Chicago retailer Sears Holdings(SHLD). Once again, Sears posted a… Read More »
Like all spinoffs, Treasury Wine Estates(TSRYF) was in high spirits following its spinoff from Fosters. The company’s results have been disappointing however, marked by troubles in its US division culminating in the destruction of millions of dollars worth of completed wine. CEO David Dearle was ousted, replaced by Michael Clarke. Amidst problems spreading to other regions, some analysts… Read More »
While the Olive Garden famously stuffs its patrons with a never ending pasta bowl, its parent company, Darden Restaurants (DRI), is providing investors some never ending drama. Ever since announcing plans to spin off the declining Red Lobster, Darden has been besieged by not one, but two different activist investors. As we noted earlier, Barrington Capital is pushing… 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 »
The Ensign Group’s (ENSG) board of directors recently approved the spinoff of its healthcare/senior housing focused REIT, CareTrust REIT. Sounds like they spent a lot of time thinking about that name. The distribution is expected to take place on June 2nd to shareholders on record as of May 22nd. The new company will trade on the NASDAQ under the ticker… Read More »
After a failed sale to Meredith (MDP) and numerous delays in the process, Time Warner (TWX) is finally ready to spin off its magazine business, Time Inc. The new company will trade on the NYSE under the ticker ‘TIME’ and TWX shareholders will receive 1 share of TIME for every 8 TWX shares owned. The distribution will take place… Read More »
The chemical space is one of several industries which have become a hotbed of spinoff activity. One of the more recent announcements came in March when FMC Corporation (FMC) announced that it would spin off FMC Minerals into a standalone company sometime in 2015. FMC currently operates three distinct segments: Agricultural Solutions – includes crop protection and pesticides… Read More »
Oil States International’s (OIS) board of directors approved the spinoff of its accommodations business, Civeo Corporation. The new company will trade on the NYSE under the ticker ‘CVEO’ and OIS shareholders will receive 2 shares of CVEO for every OIH share owned. The distribution is expected to take place on May 30th to shareholders as of the close on… Read More »
In an slightly under the radar move, Transocean (RIG) announced that it was creating a new entity, Caledonia Offshore Drilling Company, which will be comprised of eight North Sea midwater rigs. Given the location, it actually sounds like a reasonable name choice. Wow. The rigs under consideration are all from the 70’s and 80’s and would possibly include… Read More »
Shareholders heading to Winston-Salem yesterday for B/E Aerospace’s (BEAV) annual meeting were likely very disappointed (or worse) to hear that the meeting had been cancelled the day before. The company opted to postpone its annual gathering after issuing a press release stating that the company was engaged in a ‘Process to Explore Strategic Alternatives’. Hopefully the fact that… Read More »
National Oilwell Varco’s (NOV) board of directors recently approved the spinoff of its distribution business, Now Inc, and the spinoff will take place on May 30th to shareholders of record on May 22nd. The new company will trade on the NYSE under the ticker ‘DNOW’ and NOV shareholders will receive 1 share of DNOW for every 4 NOV shares… Read More »