International Paper ($IP) now has two ways to separate its European packaging operations. After spending much of 2026 preparing a DS Smith spinoff, the company confirmed October 15 that it is also talking with potential buyers following unsolicited approaches. The sale discussions are preliminary, and International Paper says it is proceeding with the spinoff preparations in parallel. The… Read More »
Johnson & Johnson ($JNJ) is leaning toward spinning off DePuy Synthes, its orthopaedics business, rather than pursuing a sale. In prepared remarks accompanying its October 13 earnings release, CFO Joseph Wolk said a spinoff currently looks like the best way to create long-term shareholder value. J&J continues to evaluate other structures and expects the separation by mid-2027. A… Read More »
Medtronic ($MDT) has received tenders for more than five times the number of shares it plans to accept in its MiniMed ($MMED) exchange offer. In preliminary results released October 12, the company estimated that approximately 18.3% of shares subject to proration will be exchanged. Qualifying holders of fewer than 100 MDT shares who tendered their entire holdings are… Read More »
UPM-Kymmene shareholders now have a much clearer picture of the plywood company they are scheduled to receive at the end of October. WISA Group held its first Capital Markets Day on September 23, laying out its standalone financial profile, balance sheet and strategy ahead of the planned October 31 demerger from UPM. Trading in WISA shares on Nasdaq… Read More »
Eaton has found a home for Mobility. The company had already planned a spinoff of its Mobility Group. Now the spinoff plan has changed. Eaton will spin off Mobility and combine it with Dana Incorporated in a Reverse Morris Trust transaction. A Reverse Morris Trust transaction allows a company to sell a division and avoid paying taxes on… Read More »
Not every announced spinoff reaches the finish line as a clean distribution. Some get paused or cancelled. Some get sold. Some turn into an IPO, a private-equity investment, and a much longer wait. This week’s roundup is about those almost-spinoffs: deals that are still worth watching, even if the original plan has changed. Kraft Heinz Puts The Breakup… Read More »
The FedEx Freight spinoff did not produce a cheap orphan stock. It produced something more interesting: a standalone LTL(less-than-truckload) carrier that already trades at a serious valuation, and a parent company that is now easier to analyze and looks cheap. Investors looking at FedEx Freight Holding Company, which now trades on the New York Stock Exchange under the… Read More »
If there is a big corporate trend, you can bet that high priced consultants were behind the idea or have since hopped on board offering advice on how to do it better. As spinoffs have become more popular, BCG has penned a number of articles on spinoffs and corporate divestitures. Their most recent piece notes that although spinoffs… Read More »
One of the more interesting (and attractive) attributes of spinoffs is that they don’t typically get a lot of attention from the media or ‘The Street’. Much rather talk about a birth (IPO) or a marriage (M&A) than a breakup. That has changed a bit over the past year though as several high profile companies announced spinoffs, which… Read More »
It’s the dog days of August and sports fans are in a frenzy. Has Tiger rebounded? Not this year. Exciting pennant races? Nope. What really has fans hopping and going wild is the start of NFL training camps. Really? Meaningless training camps? Yup and that fact is symbolic of the NFL’s power and outright dominance over the US… Read More »
Image via Wikipedia A little while ago, we highlighted some interesting academic research looking at the returns of spinoff stocks. Recently, another study looking at the space was published, albeit from a slightly different angle, by Harvard Business School doctoral graduate Emilie Rose Feldman and professors Stuart C. Gilson and Belén Villalonga. The authors attempt to answer one of the… Read More »