Honeywell’s first earnings release after the Aerospace spinoff requires a little subtraction. The headline numbers — $9.7 billion of sales and $4.52 of adjusted earnings per share — still include Honeywell Aerospace, even though HONA has been trading on its own since June 29. The numbers for the company that now trades under HON are smaller and more… Read More »
GE Vernova is the kind of spinoff that makes conglomerate breakup arguments much easier to defend. Then Wind shows up and reminds everyone why the breakup was necessary in the first place. The former GE power business reported a strong second quarter, raised full-year revenue and free-cash-flow guidance, and ended the quarter with a $176 billion backlog. Orders… Read More »
Eaton has found a home for Mobility. The company had already planned a spinoff of its Mobility Group. Now the spinoff plan has changed. Eaton will spin off Mobility and combine it with Dana Incorporated in a Reverse Morris Trust transaction. A Reverse Morris Trust transaction allows a company to sell a division and avoid paying taxes on… Read More »
Resideo was always an awful name. It’s almost as though Honeywell didn’t expect the company to stay independent when it completed the spinoff in 2018 and just used a throwaway name. Though in reality they probably spent millions on a branding agency which subcontracted to a precocious six year old for an extra piece of cake after dinner.… Read More »
Middleby completed the spinoff of its Food Processing business on July 6. The new company, Midera Food Processing, begins regular-way trading today on Nasdaq under the ticker MFP. Middleby shareholders received one Midera share for each Middleby share held as of the June 26 record date. Middleby’s completion announcement is here. We wrote about the planned separation last… Read More »
Solstice Advanced Materials is wasting little time as an independent company. Less than a year after Honeywell completed the Solstice spinoff, Solstice agreed to acquire Element Solutions in a cash-and-stock transaction valued at approximately $14.5 billion, including the assumption of net debt. Element shareholders will receive $10 in cash and 0.500 shares of Solstice common stock for each… Read More »
Verizon is leaving the Dow Jones Industrial Average, and Alphabet is taking its place. At first glance, this is just a routine index change. The Dow is price-weighted, Verizon’s share price is low, and Alphabet gives the average more exposure to the businesses that now dominate the communications sector: search, cloud, artificial intelligence, YouTube, Android and digital advertising.… Read More »