Continuing to take strategic steps to maximize shareholder value, AECOM (ACM) has announced the separation of its Management Services segment, a top-20 government services provider with a >$30bn pipeline of opportunities. Post-Spin, AECOM will continue to focus on its Design & Consulting Services and Construction Services businesses, while the Spin will offer intelligence, operations & maintenance, cybersecurity, nuclear remediation, and information technology services.
19 Jun 2019
Today's (June 10) major news of United Technologies Corp.'s (UTX) merger with Raytheon Co. (RTN) will create one of the biggest and most powerful aerospace companies in the country, and will pair UTX's Pratt & Whitney jet engines and Collins Aerospace businesses with RTN's missile defense systems and cybersecurity solutions. Critically, the merger does not disrupt the plans for UTX's three-way break-up of its Otis Elevators and Carrier Corp. segments, scheduled for 1H 2020.
10 Jun 2019
KAR Auction Services, Inc. (KAR) has set the date for its Spinoff of Insurance Auto Auctions, Inc. (IAA) for the end of June with a new filing and updated guidance for the post-Spin entities. Given how IAA will be the first publicly listed pure-play insurance auction business on the market, we expect this split to perform well for shareholders, and will publish updated analysis ahead of the break-up. In the meantime, we'll take a stake in the Model Portfolio to participate in the Spin.
07 Jun 2019
Post Holdings, Inc. (POST) is no stranger to value creation through Spinoffs, as it was separated from Ralcorp Holdings, Inc. (RAH) back in February 2012 and returned +40% in its first year (to date, +290% vs. the S&P MidCap 400 Index's return of +93%). Now, POST is looking to focus on its core cereal and refrigerated foods operations while paring down debt through the partial IPO of its Active Nutrition business in the second half of this year.
07 Jun 2019
The long-awaited break-up at industrial mega-conglomerate DowDuPont, Inc. (DWDP) is finally complete in a win for shareholders, with the separation of Corteva, Inc. (CTVA) and the first day of regular trading yesterday (June 3) and a net gain on the day of +10%. Alongside this, DWDP reclaimed the legacy name and ticker, now trading as DuPont de Nemours, Inc. (DD, Parent ex-Spins). Investors can look forward to three strong and well-positioned companies with further growth opportunities.
04 Jun 2019
Kontoor Brands, Inc. (KTB) saw the selling pressure we predicted as it left the S&P 500 Index last week on listing (entering the S&P SmallCap 600 Index) and has also experienced the broad apparel sector selloff. This has brought the stock down to below $30, and our valuation indicates this is a great opportunity to get in. Equally, we recommend investors increase their stake in VF Corp. (VFC) on its strong name brands and high-margin, high-growth business.
03 Jun 2019