A familiar name to readers of this site was leading the pack of top gainers for a bit last Thursday and the reason was a bit surprising. Exelis (XLS), a defense contractor freshly spun out of ITT (ITT), announced that it would pursue a spinoff of its own by separating its military and government services business into a standalone unit.… Read More »
Harvard Bioscience (HBIO) recently completed the spinoff of its regenerative medicine device subsidiary, Harvard Apparatus Regenerative Technologies (HART). As we previously noted, the parent’s CEO and other top management moved to the spinco, creating a leadership void. The posts have since been filled and the company recently announced the details of some further ‘inducement grants’ for its new management team. Here… Read More »
Ingersoll-Rand (IR) completed the spinoff of its commercial and residential security business, Allegion (ALLE). The new company started trading today on the NYSE and IR shareholders should have received 1 share of ALLE for every 3 shares of IR owned. The new company is expected to have revenues of over $2b and EBITDA of over $400m. For much… Read More »
If Kimberly-Clark (KMB) ever misses its health care division in the midst of its breakup, it will still have lots of Kleenex to cry into. The manufacturer of Huggies diapers announced last week that it planned to spin off its health care division to shareholders. Like many of the companies we discuss, Kimberly-Clark is something of a serial… Read More »
The WSJ publishes a weekly column titled ‘Boss Talk’ where it picks the brain of CEOs and other top brass from big companies. A few weeks ago the paper spoke with Mike Petters, CEO of Huntington Ingalls (HII), a spinoff from Northrop Grumman (NOC). This week the paper sat down with Juan Ramon Alaix, CEO of Zoetis (ZTS),… Read More »
National Oilwell Varco (NOV) recently announced plans to spin off its distribution business to shareholders sometime in the first half of next year. Its MRO business won’t be the only thing leaving the company though, as current Chairman and CEO Merill ‘Pete’ Miller will be stepping down from his post and joining the new company as Executive Chairman.… Read More »
Six months after completing its spinoff of CST Brands(CST), Valero(VLO) has sold off all of its remaining shares in the convenience store operator, CST announced yesterday. Valero sold 15,079,448 shares in an underwritten public offering after the underwriters exercised their over-allotment option in full. CST has risen 8.98% since its May 2 close, lagging the S&P 500. Nonetheless, given… Read More »
It’s almost go time for Ingersoll Rand’s (IR) spinoff of Allegion, its commercial and residential security business. Shareholders will receive one share of Allegion for every 3 shares of IR owned with the distribution taking place on December 1st to shareholders as of the November 22nd record date. The new company will trade on the NYSE under the… Read More »
Never heard of SunEdison(SUNE)? Perhaps you know it better by its old name, MEMC Electronic Materials. The name was only the first thing to change in the company’s ongoing evolution. In August, the company announced plans to spin off its semiconductor business, which had been its initial core business. The company plans to conduct an IPO for a… Read More »
Like many companies with a focus on natural gas, Encana(ECA) has struggled with the glut of production causing sustained low prices. To some extent, the company has successfully shifted production to oil and natural gas liquids which have had far better economics over the past few years. There is still more that the company needs to do, however,… Read More »
We recently highlighted a piece from DomainNameWire.com speculating that Demand Media’s (DMD) upcoming domain registration spinoff would be named Rightside. It turns out their sleuthing was on the money, as the company formally announced the new name as Rightside last week. The ‘Rightside’ in this case represents ‘everything to the right of the dot – and beyond.’ Clever, but was… Read More »
At his last earnings call in August, Time Warner (TWX) CEO Jeff Bewkes pushed back the timing of the company’s spinoff of Time, Inc. Three months later, another earnings call, and another delay. What had once been planned for completion this year is now projected to occur in the second quarter of 2014. Without elaborating on the reasons… Read More »
Newcastle Investment Corp(NCT), which in May spun off a residential REIT, the creatively named New Residential Investment Corp(NRZ), has announced plans to spin off its media business to shareholders. Newcastle is a bit of a strange beast. It is structured as a REIT and controlled by Fortress Investment Group (FIG). The transaction itself is strange as well. Newcastle… Read More »
Last Friday, a spinoff we’ve written about several times became a reality. Harvard Biosciences (HBIO) spun off Harvard Apparatus Regenerative Technologies(HART) to shareholders. HBIO shareholders received one share of HART for every four shares of HBIO owned. With management going to the spin off, recently appointed HBIO CEO Jeffery A. Duchemin received the additional titles of President and… Read More »
Some things go great together. Peanut butter and jelly. Ernie and Bert. Song and Dance. Others go less well together. Title insurance and restaurants. Over at the Inelegant Investor, we shared our surprise at this bewildering combination back in August 2012. Now, this strategy has generally worked well for Fidelity National Financial(FNF), but it seems that Corvex shares… Read More »