Month: June 2014

Index Change Roundup: Little Movement With Rayonier & Rayonier Advanced Materials, Timken & TimkenSteel, International Paper & Veritiv

By |
0 Comment

The end of June is shaping up to be another busy period in the spinoff world. That means S&P has also been very busy rejiggering its indexes in order to accommodate the new companies. Here is a roundup of the recent activity: 1) Rayonier (RYN) completed the spinoff of its advanced materials company, Rayonier Advanced Materials, on Friday.… Read More »

New Masco CEO Allman May Spin Off Businesses- Tells WSJ “I’m not a status quo guy”

By |
0 Comment

You may not know Masco (MAS) but they’re in your bathroom, they’re in your kitchen, they’re even in and on your walls. With brands such as Delta faucets, Behr paints, KraftMaid cabinets, and one of the largest installers of insulation products, Masco grossed $8.2 billion in revenue in last year, down from a 2006 peak of $12.7 billion.… Read More »

After Pressure From Relational Investors, Timken Will Spinoff TimkenSteel This Month

By |
0 Comment

‘Resistance is futile’ – The Borg Star Trek fans will no doubt recognize the famed motto of those nasty, robotic, intergalactic conquerors hell-bent on assimilation. What they won’t know is that the phrase is also rumored to be frequently muttered at company board meetings after Ralph Whitworth’s Relational Investors announces a stake. The activist firm has been quite a… Read More »

Cleaning Up The Upcoming Spinoff Table: Autogrill & World Duty Free Group, Pfizer & Zoetis, American Airlines

By |
0 Comment

Companies constantly change their plans and just because a spinoff gets announced doesn’t mean it actually gets done. It’s (unfortunately) quite common for plans to get scrapped or altered in some way and sometimes the unit to be spun off is just sold instead. While we try our best to stay on top of the news, some names get… Read More »

Merger Mondays Claim Another Spinoff In Covidien

By |
0 Comment

Merger Mondays are back. The latest mega deal announced is Medtronic’s (MDT) ~$42.9b takeover of device maker Covidien (COV). The deal price represents a ~30% premium and includes $35.19 of cash and 0.956 Medtronic shares. While Medtronic’s management is out touting the numerous cost savings and synergies gained through the deal, the main motivation behind the deal appears to… Read More »

The Great Exchange! CBS To ‘Split Off’ Remaining CBS Outdoor Stake Via Exchange Offer

By |
0 Comment

CBS (CBS) finally released details on its plan to ‘split off’ its remaining 81% stake in CBS Outdoors (CBSO). After successfully raising ~$2b selling 19% of the outdoor advertising company in an IPO a few months ago, the company is offering a voluntary exchange offer to dispose of its remaining shares. CBS Class B shareholders will be able… Read More »

Hess’ Retail Spinoff Saga Ends With Sale of Downstream Assets to Marathon Petroleum

By |
0 Comment

We didn’t really cover this saga, but last year Hess Corporation (HES) was embroiled in a heated proxy battle with Paul Singer’s Elliott Management. The fund argued (and put together a nice presentation) that the company was poorly managed, had lousy governance (too many cronies on the board) and was undervalued on a sum of the parts basis.… Read More »

Jana’s Rosenstein, DiDomenico Talk Activism, Oil States International With Barron’s

By |
0 Comment

We are big fans of Jana Partners here. Although the fund describes its investment approach as ‘value plus catalyst’, it’s not afraid to get vocal and create its own catalyst. Just ask Agrium’s (AGU) management team. While that situation didn’t achieve the desired result, the firm has notched numerous activist victories including the spinoffs (or possible spins) at… Read More »

B/E Aerospace Strategic Review Results In Plan To Spin Off Services

By |
0 Comment

Last month, we wrote about speculation that B/E Aerospace(BEAV) might result in the spinoff of assets.  Today, the company announced that it will indeed split into two independent companies, one focused on Manufacturing, and one on Services. The company expects the spin off to occur in the first quarter of 2015. The co-CEO’s statement in support of the… Read More »

Another Spin, Another Index Change- CareTrust REIT To Join Parent Ensign Group In S&P SmallCap 600

By |
0 Comment

Following up on last week’s slew of index changes, another spin off resulted in another index change yesterday. The Ensign Group(ENSG) completed its spin off of CareTrust REIT(CTREV) after yesterday’s close. Subsequent to the spin, CareTrust joined its former parent in the S&P SmallCap 600, pushing out struggling insurer Tower Group International(TWGP). Given that both stocks are in… Read More »

A Week Of Spins Means Index Changes: Washington Prime Group, Civeo and Now Inc to Join S&P MidCap 400

By |
0 Comment

Last week featured a full line up of spinoffs with Simon Property Group (SPG) spinning off the Washington Prime Group (WPG) on Wednesday, May 28, and National Oilwell Varco (NOV) and Oil States International (OIS) spinning off NOW Inc (DNOW) and Civeo (CVEO) respectively on Friday, May 30. The new companies are all significant enough to force a reshuffle of… Read More »

The Time Is DNOW! National Oilwell Varco Completes Spinoff of NOW Inc

By |
0 Comment

National Oilwell Varco (NOV) completed the spinoff of its distribution company, NOW Inc (DNOW) last week. The new company trades under the ticker ‘DNOW’ and NOV shareholders should have received 1 share of the new company for every 4 NOV shares owned. The spin was completed after the close at the end of May, but today will mark… Read More »

Civeo Gains Independence From Oil States With Completion Of Spinoff

By |
0 Comment

As planned, Oil States International (OIS) completed its spinoff of accommodations unit Civeo (CVEO) after the close of business on Friday, May 30, 2014. OIS shareholders received two shares of Civeo for each share they owned.  As is often the case, each company issued its own, slightly different press release this morning marking the completion of the transaction.… Read More »