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It’s been over 6 years since Finnish investors have witnessed a corporate break-up and next week, Metso Corp. (MEO1V FH) will be back once more to split again. After a successful Spinoff of Valmet Corp. (VALMT FH) in 2014, which jumped +45% in its first year, Metso will be Spinning off its Minerals business to merge with another industrial player, Outotec Corp. (OTE1V FH) while the RemainCo (to be renamed Neles Corp) will be a pure-play Flow Control Business.
23 June 2020
Full Analysis
HD Supply Holdings, Inc. (HDS) has a history of value creation through divesting non-core assets since its IPO in 2013, coming to its most recent move: the planned Spinoff of its Construction & Industrials distribution business. We believe the Parent will benefit from this transaction, and additional catalysts are present with the involvement of two activist investors, a director purchasing stock on the open market, and a flexible balance sheet allowing for a higher multiple. Read on for more.
05 June 2020
Full Analysis
The ongoing Coronavirus outbreak has led to the suspension of the current NBA season and the broad implementation of curfews around the country on non-essential travel, resulting in the selloff in the major indices. The Madison Square Garden Co. (MSG) has decreased by -34.3% YTD compared to the S&P Total Market Cap Index return of -27.6% to date, making the upcoming Spinoff of the Entertainment business even more attractive at these lower levels.
17 March 2020
Full Analysis
We entered Arconic, Inc. (ARNC) in May 2019 on the back of major insider buying patterns (we booked partial profit of +18% within three months), and now the long-awaited Spinoff of Arconic Corp. (ARNC, Spin) is upon us, scheduled for April 3, 2020. ARNC (Parent) is renaming to Howmet Aerospace, Inc. (HWM), and with many different elements involved, our analysis lays out how best to play this aerospace/aluminum split.
17 March 2020
Full Analysis
In-line with the previous successful Spinoff of its commercial and residential security business Allegion Plc (ALLE, which has more than doubled its share price since listing), Ingersoll-Rand Plc (IR) is prepared for its Reverse Morris Trust (RMT) transaction of its Industrials business to be merged with listed Gardner Denver Holdings, Inc. (GDI), which will become a global leader in mission-critical flow creation and industrial technologies. Click in for more on this upcoming RMT.
20 February 2020
Full Analysis
In a way that has previously created shareholder wealth for The Wallenberg family (considered the Rockefellers or Rothschilds of Sweden) via their holding company Investor AB (INVEB SS), one of the largest global appliances makers Electrolux AB (ELUXB SS) will be Spinning off its profitable commercial kitchen and laundry equipment business by February 2020. Provided no major surprises to ELUX’s end of January release of its demerger prospectus, we believe an entry position pre-Spin is warranted.
10 January 2020
Full Analysis
With Ingersoll-Rand’s (IR) earnings out tomorrow (Oct 29), we expect the management to give further clarity around its Q1 2020 Reverse Morris Trust transaction with listed Gardner Denver Holdings, Inc. (GDI). With our early analysis (assuming a 1:1 ratio), we’ve explored the pre-Spin opportunity of entering now, possibility of an S&P 500 listing for new GDI as well as our longer-term view in the pure-play Climate space.
28 October 2019
Full Analysis
Delayed from its Q1 2019 targeted Spinoff timing by the US government shutdown, KAR Auction Services, Inc. (KAR) is set to separate Insurance Auto Auctions, Inc. (IAA) on June 28, 2019. This is the first ever Spinoff in the field of salvaged auto auctions, and will create a pure-play insurance auction company with superior EBITDA margins compared to KAR's ADESA segment. The Spin looks fairly valued in when-issued trading, but there is significant upside in the Parent ex-Spin.
19 June 2019
Full Analysis
With the NBA basketball finals coming to an end last night (congrats to the Toronto Raptors), the sporting world turns their attention to what’s happening in NYC at Madison Square Garden (MSG). While fans look to see if James Dolan will fail (again) to bring a marquee player to the Knicks this summer, we’ve analyzed MSG and its upcoming Spinoff of its trophy sporting assets. Don’t wait for the first Form-10, it’s time to get in now pre-Spin as the Spinoff is not the only option being explored.
14 June 2019
Full Analysis
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 April 2019