Nearly a decade ago, we wrote about Armstrong World Industries(AWI) as it emerged from a long bankruptcy that resulted from asbestos liabilities. At the time, we thought the stock looked expensive. Ten years later, the stock price is basically in the same place, and Armstrong is spinning off its flooring business, completing a dismantling begun with the 2012… Read More »
Nuvectra(NVTR) had an awful first week following its spinoff from Greatbatch(GB), as we pointed out last Friday. At Friday’s close, it was trading well below its cash position, and it carries no debt. Investors who sought to exploit this spread have been rewarded today with a steadily rising stock that has risen over 30%. The stock trades below… Read More »
CBS Corporation (CBS) is ready to shed one of its oldest assets. While the network is well known today for its hit shows, its origins are in the radio business. Nothing lasts forever though and during this week’s presentation at its analyst day, CEO Les Moonves announced that the company was considering ‘its strategic options’ for the radio business.… Read More »
We’re not sure we’ve ever seen a new spinoff drop so much, so fast. Earlier this week, Greatbatch(GB) completed the spinoff of Nuvectra(NVTR). Nuvectra has an approved product and $75 million in cash, but is still an early stage company. After initially climbing above $11 on Monday morning, Nuvectra has gone straight down. Today alone, the stock is… Read More »
Masayoshi Son’s Softbank (SFTBY) is shaking up its organizational structure, creating two separate, but still wholly owned, internal companies. One business will house its domestic (Japanese) businesses such as mobile and its stake in Yahoo Japan, while the other unit will contain its overseas investments. The overseas bucket will include Softbank’s investments in budding technology companies, such as… Read More »
Yesterday, Greatbatch(GB) completed its previously announced spinoff of Nuvectra(NVTR), as expected. “Today’s successful spin-off of Nuvectra marks another point in our strategy to design, develop and manufacture discrete technologies and complete active implantable medical device systems in partnership with customers,” said Greatbatch President and CEO, Thomas J. Hook. “Nuvectra is a valuable partner and customer utilizing an extensive… Read More »
Sadly, not every announced spinoff actually ends up executed. For example, earlier this week we highlighted Fidelity National Venture’s (FNFV) postponement of its restaurant group spinoff while it exercises patience and awaits better ‘market conditions’. Another recently scrapped spinoff was Federal-Mogul Holding’s (FDML) planned separation of its Motorparts business from its Powertrain unit. The decision shouldn’t have come… Read More »
After successfully spinning off J. Alexanders (JAX) late last year, Fidelity National Ventures (FNFV) was set to spin off the rest of its restaurant assets under the holding company American Blue Ribbon Holding. Then plans changed. The headline was that the spin was delayed due to ‘market conditions’, a catchall phrase that is especially useful during market volatility, but… Read More »
A quick update now that the transaction is official. The Manitowoc Company (MTW) completed the tax-free spinoff of Manitowoc Foodservice (MFS) on Friday, with shareholders receiving one share of MFS for every share of MTW owned. Expectations were for the legacy crane business, which kept the company name, to languish amidst a severe downcycle and for the foodservice… Read More »
Greatbatch(GB) shareholders should be prepared for their portfolios to look a bit different this year. Later this year, the medical device manufacturer will be changing its name to Integer Holdings Corporation. First, the company will spin off QiG Group, which will be renamed Nuvectra. On March 14, shareholders as of March 7 will receive one Nuvectra share for… Read More »
Under pressure, once again, from Starboard following the abandonment of its plan to spin off its huge stake in Alibaba(BABA), Yahoo(YHOO) has formed an independent committee of its Board Of Directors to explore strategic alternatives. The Board has formed a Strategic Review Committee of independent directors to lead this effort, with the assistance and support of management. The… Read More »
Farewell Foodservice! Manitowoc’s (MTW) board of directors formally approved the spinoff of Manitowoc Foodservice, its foodservice equipment segment, last week. The new company will trade on the NYSE under the ticker ‘MFS’ and on March 4th, shareholders will receive one share of MFS for every MTW share owned. A ‘When-Issued’ market is expected to begin on or around February… Read More »
Grab a tissue and say farewell to the Tyco (TYC) name. The former high flying conglomerate has a complicated history full of acquisitions (lots of those), strategy shifts, scandal ($6,000 shower curtains!) and of course, a lot of spinoffs. Current DuPont (DD) CEO Ed Breen smashed the company apart not once, but twice, creating three entities in both… Read More »
Tribune Publishing (TPUB), a 2014 spinoff from Tribune Media, received a large cash infusion of over $44m from Chicago entrepreneur Michael Ferro last week week in exchange for 5.2m shares. Mr. Ferro will become TPUB’s largest shareholder with ~16.6% of the shares and will join the company’s Board of Directors, replacing Eddy Hartenstein as Executive Chairman. Interestingly, Mr. Ferro… Read More »
With a diverse business portfolio and some enterprising competitors, GlaxoSmithKline (GSK) has been the subject of spinoff rumors for years. So far, the company has opted to not pursue any divestitures of that nature and that will remain the case for some time if CEO Andrew Witty has his way. Well…at least regarding the consumer unit. While discussing the… Read More »