As the jeans space heats up with companies rushing to the market like Levi Strauss & Co. (LEVI), Kontoor Brands, Inc. (KTB) and The Gap, Inc. (GPS), we believe longer-term, both VF Corp. (VFC) ex-Spin and KTB look interesting as an investment. As we have seen time and again with some recent Spinoffs (particularly in the US), listing a company with debt with a short-term index play due to the Spinoff’s size is a recipe for a sell-off from its first few days of normal trading.
16 May 2019
In what seems to be a win for investors, ATM and point-of-sale terminal maker NCR Corp. (NCR) has been approached for a takeover by private equity firms (as of yet unnamed). This pushes the stock closer to our January takeover scenario valuation, though the company has not formally committed to selling itself. Read on for more details on the previous activism attempts and our potential Spinoff/sale scenarios.
08 May 2019
Brunswick Corp.'s (BC) upcoming split with its Life Fitness and legacy billiards businesses, originally planned as a Spinoff, is now looking more likely to be sold instead, given current market conditions and potential value creation opportunities available to the 173-year-old boatmaker. In this analysis, we take a look at the likely valuations involved in either scenario (Spin or sale), and examine exactly what brought the company to this decision.
01 May 2019
The fast-growing online classifieds space gained a new player on Wednesday with Adevinta ASA (ADEB NO) hitting the European market following its distribution from Parent Schibsted ASA (SCHB NO). In a positive move to participate in the new company's growth prospects, SCHB plans to retain a ~60% stake in ADEB with the opportunity to monetize that stake later on. Meanwhile, both companies will benefit from industry veterans at the helm.
12 Apr 2019
A.P. Moller-Maersk A/S (MAERSKB DC) has become part of the recent global trend of conglomerates divesting and Spinning off assets to focus on their core business (DWDP, NPN, NOVN to name a few). In this case, the 115-year-old Danish conglomerate will be Spinning off its drilling operations unit called The Drilling Co. of 1972 A/S (DRLCO DC) this week (April 4, 2019).
02 Apr 2019
The last biotech Spinoff was in June 2017 where Actelion (ATLS) in Switzerland Spun off its clinical R&D arm, Idorsia (IDIA). In IDIA’s first year, the stock doubled, significantly outperforming the healthcare index at the time. Almost 2 years later, Ironwood Pharmaceuticals, Inc. (IRWD) will be Spinning off its rare diseases R&D segment, Cyclerion Therapuetics (CYCN) on April 2, 2019.
29 Mar 2019