Corporate Spinoff Roundup – February 2019

Feedback was overwhelmingly positive to last month’s piece so we are going to make it a monthly ‘thing’. As a reminder, although we update our tables as new information is released, we recognize that not everyone is constantly hitting refresh in order to see when a distribution date might get posted (please do so in the future though). Going forward, at the end of every month we will update this post to show recent activity and immediately upcoming spinoffs to help focus your activities:

Spinoffs Completed Prior Month

  1. February 7th – Henry Schein (HSIC) completed the spin off of its animal health business and subsequently merged the entity with Vets First Choice to create Covetrus (CVET). This was a Reverse Morris Trust transaction. The first few weeks of trading for CVET have been rough with the name down a little over 10%.
  2. February 25th – Generex Biotechnology (GNBT) was supposed to distribute shares of NuGenerex ImmunoOncology, but it’s not exactly clear whether or not that happened. This is a small OTC biotech company that seems to do a lot of talking and not much moving, so be alert.
  3. February 25th – GE (GE) completed the spin off of GE Transportation and merged it into Wabtec (WAB) forming a more vertically integrated locomotive behemoth. GE also announced that it was unloading its biotech business to Danaher (DHR) around the same day. The Transportation spinoff was initially going to be via Reverse Morris Trust transaction, but, due to last minute changes in the deal, it became taxable to GE shareholders who now own a minority stake in the combined entity. As a result of the deal, Wabtec was bumped up to the S&P 500.

Spinoffs Set For Coming Month

None, but please check out our ‘Upcoming Spinoffs’ table for a more complete picture of what is to come. There are several spins scheduled for the first half of the year.

As always, please let us know if we missed anything and whether or not you found this helpful.

Disclosure: Author holds no position in any stock listed.