Tag Archives: Reverse Morris Trust

Come Rain Or Come Schein- Animal Health Spinoff To Be Called Covetrus After Reverse Morris Trust Transaction With Vets First Choice

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Back in April, Henry Schein, Inc.(HSIC) announced that it would be spinning off its Animal Health business and merging it with Vets First Choice in a Reverse Morris Trust transaction.  At the time, the company projected the transaction would be completed in the fourth quarter of 2018, but it has since slipped into the first quarter of 2019. … Read More »

Genuine Parts To Spin Off SP Richards In Reverse Morris Trust With Essendant

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Genuine Parts Company (GPC) announced last month that it will spin off its business products division, S.P. Richards, and immediately merge the new entity with Essendant (ESND) via the tax efficient Reverse Morris Trust. The deal will allow GPC to more fully focus on its ‘core’ automotive (via NAPA) and industrial products, areas in which it has been… Read More »

After Five Years Of Trying, Meredith(MDP) Finally Has Time(and People)

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Even before Time Warner(TWX) spun it off in June 2014, Meredith(MDP) was in talks trying to effect a Reverse Morris Trust transaction. Over the subsequent years, Time repeatedly was the subject of buyout discussion, and Meredith was always in the mix.  Well after five years, Meredith finally got its prize. On January 31, Meredith closed its $2.8 billion… Read More »

nVenting About Pentair’s Electrical Spinoff

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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 »

Spinoff Odds & Ends: South Africa Spinoffs, David Einhorn Buys Some $HPE

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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 »

Spinoff Odds and Ends: HPQ vs. HPE, Treasury Wine(TSRYY)

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A few links for today Bloomberg takes a look at how HP Inc (HPQ) and Hewlett Packard Enterprise (HPE) are doing since their 2015 breakup and to the surprise of the afor today:uthor – and I would guess to absolutely no readers of this site – the ‘runt of the litter’ HP Inc is actually doing well. Newsflash:… Read More »

Following Spinoff of Goto To LogMeIn(LOGM), Citrix(CTXS) Puts Itself Up For Sale, Stock Spikes On Rumor

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Citrix Systems(CTXS) stock rose 6.8% yesterday, almost all towards the end of trading, as rumors circulated that the company had hired Goldman Sachs to find a buyer. The Fort Lauderdale, Florida-based company hired Goldman Sachs Group Inc. to sound out buyers including private equity firms, said the people, who asked not to be identified because the information isn’t… Read More »

Will Nelson Peltz’s Procter & Gamble(PG) Stake Lead To Spinoffs?

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Nelson Peltz is legendary for successfully pushing for structural change at large companies.  This has often resulted in spinoffs of disparate divisions. Last week, Peltz’s investment vehicle, Trian Fund Management, disclosed a $3.5 billion stake in Procter & Gamble(PG). Peltz steps into the shoes of Bill Ackman, who several years ago took an activist position in P&G, only… Read More »

Mr. Vornado (VNO) Exits Washington – JBG Smith Properties Spinoff On Track For Q2

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New York, New York. It’s a tune Vornado Realty Trust (VNO) shareholders should get used to humming once the company’s upcoming Washington DC property spinoff is completed. The spinoff will actually be executed via Reverse Morris Trust, with the company spinning out its properties into a separate entity and subsequently merging them into the privately held JBG Properties.… Read More »

Gabelli Keeps Picking Spinoffs At Barron’s Roundtable(GBL AC HRI HTZ BATRK VIAB CBS LBTYK)

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Every year Barron’s gathers a group of asset management luminaries for a roundtable discussion. The group collectively manages many many billions of dollars and includes people like Jeffrey Gundlach, Mario Gabelli and Meryl Witmer. While the discourse includes a bit about the overall macro environment, the focus is mainly on each individual’s top investments for the coming year.… Read More »

CBS Radio To Merge With Entercom(ETM) In Reverse Morris Trust Transaction

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Last March, we reported that CBS(CBS) was considering ‘strategic options’ for its radio business.  After it was unable to find a buyer, the company moved forward with plans for an IPO and spinoff of CBS Radio. Today, the company again announced a change of plans. Instead of an IPO, the company will be spun off and immediately merge… Read More »

Citrix(CTXS) Shareholders To Get LogMeIn(LOGM) Stock For GetGo Stake On January 31

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Citrix Systems(CTXS) is finally letting go of GetGo.  The company first announced plans for the spinoff of its GetGo division in November 2015. Last July, an agreement was reached with LogMeIn(LOGM) to merge with GetGo immediately post spin off in a Reverse Morris Trust transaction. Citrix announced that shareholders of record on January 20 will receive approximately .1718… Read More »

Reverse Morris Trust- What Is It And What Is It Used For?

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What is a Reverse Morris Trust? You may have heard the terms Reverse Morris Trust or Morris Trust used in regards to a spinoff transaction. These terms describe two related types of transactions in which a company is able to sell assets without triggering a tax liability for either the company or shareholders. Naturally, this can be quite… Read More »

Bioverativ(BIVV), Varex(VREX) Spins And LogMeIn(LOGM)/Citrix(CTXS) Reverse Morris Trust Drive S&P Index Changes

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As we near the end of the month, the completion of three spinoff transactions will be driving changes in various S&P Indexes. Citrix Systems(CTXS) will be spinning off its GetGo division which will then merge with LogMeIn(LOGM) in a reverse Morris Trust transaction. After the transaction is completed on January 31st, Citrix will remain in the S&P 500.… Read More »

Reverse Morris Trust Is GoTo Strategy For Citrix As It Merges Division With LogMeIn

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Last November, Citrix Systems(CTXS) announced plans to spin off its GoTo business.  This week, it announced that the spinoff would culminate in a merger with LogMeIn(LOGM) in a Reverse Morris Trust transaction. The transaction, which is expected to be tax-free, will leave Citrix shareholders owning 50.1% of the new company. LogMeIn’s management team, led by CEO Bill Wagner,… Read More »