The chemical space is one of several industries which have become a hotbed of spinoff activity. One of the more recent announcements came in March when FMC Corporation (FMC) announced that it would spin off FMC Minerals into a standalone company sometime in 2015. FMC currently operates three distinct segments: Agricultural Solutions – includes crop protection and pesticides… Read More »
Oil States International’s (OIS) board of directors approved the spinoff of its accommodations business, Civeo Corporation. The new company will trade on the NYSE under the ticker ‘CVEO’ and OIS shareholders will receive 2 shares of CVEO for every OIH share owned. The distribution is expected to take place on May 30th to shareholders as of the close on… Read More »
National Oilwell Varco’s (NOV) board of directors recently approved the spinoff of its distribution business, Now Inc, and the spinoff will take place on May 30th to shareholders of record on May 22nd. The new company will trade on the NYSE under the ticker ‘DNOW’ and NOV shareholders will receive 1 share of DNOW for every 4 NOV shares… Read More »
The market may be hitting new highs, but there are some concerns about the future. Additionally, not every sector has benefited equally from the climb, at least according to Noble Corp (NE). The company’s Chairman/President/CEO David Williams blamed ‘financial market conditions, both generally and with respect to the equity markets for offshore drilling companies’ for the decision to scrap… Read More »
Another buyout of a successful spin hit the newswire earlier this week when Forest Laboratories (FRX) announced that it would acquire Furiex Pharmaceuticals (FURX) for $95 per share in cash. Furiex was spun out of PPD (which has since been acquired) back in 2010 and had been on a tear after dropping out of the gate. Most recently, the… Read More »
“The wind goes toward the south, and turns about to the north; it turns about continually in its spin, and the wind returns again to its spin.”(Ecclesiastes 1:6) Some companies are such inveterate spinners, that one could get dizzy watching their machinations. In 2000, after 14 years of ownership, Ralston Purina spun off Energizer Holdings(ENR). Ralston Purina would… Read More »
The New Yorker magazine featured a famous cover in 1976 which aptly captured the self-centered New Yorker view of the world. Lets just say that New Yorkers feel that precious few non-New York locales are even worth noticing. Real estate firm Vornado Realty Trust (VNO) seems to feel (mostly) the same way as the company announced that it would spin… Read More »
Sometimes, businesses that begin based on natural synergies grow apart. This appears to be the case with Alliance Techsystems(ATK). The company has three divisions: Aerospace, Defense, and Outdoor Sports. This once made a great deal of sense, as the ammunition the company sells to the military is a similar product to the ammunition it sells to hunters. As… Read More »
CBS Corporation (CBS) continues to make progress in its three step plan for outdoor advertising company CBS Outdoor Americas (CBSO). The first milestone was achieved last month with CBSO’s successful IPO and now CBS has received a favorable private letter ruling from the IRS regarding the conversion of CBSO into a REIT. According to CBS CEO and President Les… Read More »
You probably have not heard of Hop-On(HPNN). After all, its share price is so small, it shows up as 0.00 on Yahoo Finance. Unlike many such companies it appears to actually have a little revenue(793K in 2013), though it is unclear exactly what it is from. Recently, the company took a break from its usual bizarre rants Market… Read More »
Another week, another heavily leveraged spin from Eddie Lampert. Just last week, Sears Holdings(SHLD) shareholders received shiny new shares in Lands’ End(LE). But Sears received a bigger gift- $500 million in cash paid as tribute by the new company. Lands’ End, like many Sears and Kmart customers, borrowed heavily to give this gift and now will be constrained… Read More »
The excitement level was high when Exelis (XLS) announced that it would create a new ‘brand’ for its upcoming military and government services spinoff. To better understand why, lets jump back a few years and remember how the name Exelis came about: ITT Exelis is an energetic name that is derived from the word “excel,” which is rooted… Read More »
Land’s End (LE) is now in control of its own destiny. The well-known retailer was spun off from Sears Holdings (SHLD) after the close on Friday and began trading regular way on Monday. Sears shareholders should have received 0.300795 shares of LE for every SHLD share owned. Investors haven’t been too thrilled with the new company and shares… Read More »
Roughly a year ago CBS Corp (CBS) decided to shed its outdoor units. Its Asian & European units would be divested and were ultimately sold to private equity firm Platinum Equity for an estimated $225m last fall. The company had grander plans for its North American outdoor segment though. Much grander plans, including an IPO, followed by a spinoff… Read More »
There’s much value to be found in spins, but not every spin is a winner. That’s the reminder from YCharts’ Jeff Bailey, who took a recent look at ADT’s(ADT) “alarming” performance. Despite a strong, post-spinoff start, the company plunged and has underperformed on poor earnings. in October 2012, and after an initial rally ADT shares turned down. Cable… Read More »