Hilton (HLT) completed the spinoff of a lodging REIT, Park Hotels & Resorts (PK), and of its timeshare business, Hilton Grand Vacations (HGV), earlier this week. The new companies begin trading the ‘regular way’ yesterday and shareholders should have received 1 HGV share for every 10 HLT shares owned and 1 PK share for every 5 HLT shares… Read More »
Varian Medical Systems (VAR) is currently in the process of spinning off its imaging component business, Varex Imaging. As part of the transaction, Varex will now send Varian a $200m parting ‘gift‘ (or dividend) to be funded by new borrowings. According to Varian’s CEO Dow Wilson, ‘the Imaging Components business has gained momentum since last May when we… Read More »
There is just something exciting about a three-way split. It’s just such a radical transformation and in some ways it’s hard to believe that a company like hotelier Hilton Worldwide (HLT) could pull it off. ITT sure, but Hilton? January 3rd is the day though when Hilton will officially spin off a) Hilton Grand Vacations, its timeshare business… Read More »
The year is coming to an end and it’s really cold outside. Warm up and start your weekend with a few spinoff related links: The always excellent Value and Opportunity took a close look at the recent spinoff of Italian gas distributor Italgas (IG.MI) from SNAM spa (SNMRF). In his opinion, although there is real risk in the name,… Read More »
The Overseas Shipholding Group (OSG) completed the taxable spinoff of International Seaways (INSW) on schedule last week. On November 30th, OSG shareholders should have received 0.3333 shares of INSW and the first day of trading was on December 1st. As discussed in our earlier piece, the situation for warrantholders was slightly different. As per usual, the internal goodwill was… Read More »
It’s not surprising to see companies experienced with spinoffs go back to the same playbook, but Varian Medical System’s (VAR) upcoming Imaging Components spinoff is still a bit surprising. After all, it’s been 17 loooong years since Varian Associates broke itself into three different parts, including Varian Medical Systems. The new business will be named Varex Imaging Systems and… Read More »
Johnson Controls (JCI) completed its inversion deal/merger with Tyco in early September creating a powerhouse in building solutions for efficiency and fire and safety. With the merger complete, the company can now complete the spinoff of its non-core automotive and interiors business, Adient. The spin was announced way back in 2015, but rumors of a spin existed even earlier.… Read More »
HCP ‘s (HCP) board of directors approved the spinoff of Quality Care Properties, a REIT whose portfolio is comprised of skilled nursing and assisted living facilities. At the time of the spin announcement, Quality Care Properties, which was previously known internally as HCR ManorCare, was expected to own over 320 properties with estimated annual rent of about $485… Read More »
There are a number of spinoffs scheduled to be completed at the end of this month (October) or in early November and naturally, there are a few scheduled changes to the S&P indices as a result. Here is a summary of the changes which will occur over the next week or so: HCP Inc (HCP) is spinning off Quality… Read More »
It’s no surprise that many recently announced spinoffs have been abandoned in favor of outright sales. Possible reasons include the fact that numerous industries are suffering from a lack of organic growth or the fact that these bite size carve out pieces are more easily acquired. Oh yeah, it also helps when acquirers toss around rich valuations. The… Read More »
You may have noticed a lull in our regular programming and for that we apologize. Over the past few weeks, a number of spinoff transactions have closed leading to quite a few shifts within the S&P indices. Here is a summary of the various transactions: Honeywell’s (HON) AdvanSix (ASIX) spinoff was distributed on October 1st and the new company… Read More »
Honeywell’s (HON) board of directors approved the spinoff of AdvanSix, its resin and chemical business. The spinoff will take place on October 1st and shareholders as of September 16th will receive 1 share of AdvanSix for every 25 shares of HON owned. A When-Issued market is expected to be in place beforehand, but post-spin, the company will trade… Read More »
The temperatures remain high, but the summer season is winding down so lets catch up on some news we may have missed. In early August, Emerson Electric (EMR) reached a deal to sell off its network power business to a group led by private equity firm Platinum Equity for the price tag of $4b. The unit generated revenue… Read More »
After pressure from activist firm Engine Capital, CST Brands (CST), a 2013 spinoff from Valero (VLO), announced in early March that it was considering its strategic options. Based on this announcement, Jim Cramer was willing to give his blessing ‘to speculate’ on the name even though it wasn’t ‘exactly what you would call cheap’. While that hardly seemed… Read More »
Shareholders at both Johnson Controls (JCI) and Tyco (TYC) overwhelmingly approved their upcoming merger at their respective special shareholder meetings last week. At JCI, the approval came in the fact of a shareholder lawsuit challenging the company’s executive pay (JCI CEO Alex Molinaroli is making out like a bandit in this deal) and other facets of the deal.… Read More »