Jack In The Box (JACK) will sell Qdoba, its Mexican themed restaurant brand, to private equity firm Apollo Global Management for $305m cash. JACK actually acquired Qdoba for $45m back in 2003, so the company was able to do some nice things with it over the years. Unfortunately, the brand has struggled to grow recently and same store… Read More »
Delphi Automotive’s (DLPH) board of directors formally approved the spinoff of its powertrain business earlier this month and set today, December 4th as the distribution date. Shareholders as of November 22nd will receive 1 share of the new Delphi Technologies for every 3 shares of Delphi Automotive currently owned. Immediately after the spin, the parent company will rename… Read More »
Investors are taking gun and ammo manufacturer Vista Outdoor(VSTO) out back and shooting it. Vista stock, which was above $50 in July 2016, was down nearly 30% last week after an awful earnings report, and now trades just over $14. The company, which was spun off in 2015 by Alliance Techsystems as part of its Morris Trust merger… Read More »
Lets take a look at some recent spinoff news from the large asset manager: 1) Horizon Kinetics Likes Conduent (CNDT) At the very end of 2016, Xerox (XRX) spun off its business process outsourcing unit Conduent. After an initial dip, shares have recovered, but overall, the stock has mostly been flat since the spinoff. That isn’t a terrible outcome… Read More »
The election of the Trump administration seemingly brought new life to the coal industry and the companies still operating in the space are taking full advantage. One example is Consol Energy’s (CNX) plan to spinoff its coal assets in order to create a gas focused E&P company. The spinoff was formally approved by its board of directions last month and… Read More »
Every schoolchild is aware of the dangers of mixing water and electricity. Perhaps with this in mind, Pentair(PNR) will be spinning off its Electric division and retaining its Flow Control division. As every spinoff needs a gut-wrenchingly bad name with an even worse explanation of its meaning, the new company will be known as nVent Electric. Why? Beth… Read More »
Earlier this year Novartis (NVS) CEO Joe Jimenez said the company was considering a sale or a spinoff of Alcon, its surgical equipment and eye care business. The company paid a hefty penny (actually ~$50b worth of pennies) to acquire the business back in 2010, but as with a lot of M&A, things haven’t gone as planned. Many… Read More »
Lets close off the week with some happenings in the world of spinoffs: 1) Spinoffs Are Popular On The Johannesburg Exchange Every so often, a reader writes in to the site to let us know that our international coverage is weak (some use nicer language…others less nice). To which we reply thanks for reading and that volunteers are… Read More »
In this edition, we provide a few updates to some of our recent articles focusing on activist activities: 1) Sachem Head vs. Shire Pharmaceuticals (SHPG) Shire Pharmaceuticals announced this summer that it was considering its ‘strategic options’, including a potential spinoff, for its neuroscience division in order to better focus on its rare diseases business. Unfortunately, the company’s stock has… Read More »
The automotive space is undergoing a tremendous amount of change and the forecast calls for more turbulence. I mean, Google’s Waymo is advertising! It’s been interesting to watch the different approaches taken by the OEMs though. For example, GM (GM) has been very active in both electrification (despite the hype differential its Bolt outsells Tesla’s Model 3) and… Read More »
Tidjane Thiam’s tenure at the top of Credit Suisse (CS) has hardly been a picnic. Big lawsuits, struggling business units and a difficult overhaul has left the stock well below where he inherited it despite strong gains this year. The company is only two years into its grand ‘3 year plan’ which entails cutting costs, reducing the size… Read More »
Way back in 2013, Pfizer (PFE) CEO Ian Read plotted a future course that could have included a spinoff several years down the line. Since then there have been constant rumors and speculations about possible breakups and portfolio changes, but those were ultimately rejected. Last week though, the company shifted gears by formally announcing that it is considering its… Read More »
Delphi Automotive (DLPH) announced it was spinning off its powertrain segment back in May in order to better highlight its burgeoning electronics business. Now the two ‘new’ companies have names and oh boy, they’re ‘good’ ones. Lets start with the electronics business will be called Aptiv and will trade under the ticker ‘APTV’. No, no one is being… Read More »
British energy giant BP (BP) recently announced that it plans on carving out its pipeline assets into a separately traded vehicle via IPO layer this year. The new company, BP Midstream Partners, will be structured as a Master Limited Partnership (MLP) and is expected to trade under the ticker ‘BPMP’. Here is what the new company will own:… Read More »
Autoliv(ALV) is the world’s largest manufacturer of seat belts and air bags. Now, the Swedish company wants to spin off its fast-growing Electronics business. The Electronics business focuses on Active Safety as opposed to Autoliv’s core Passive Safety business. Autoliv stock jumped over 12% on the announcement, as investors anticipated strong value creation in the Electronics division with… Read More »