Spinoff Report
KAR: Used Car Parts Set to be a Global Winner, Enters MP
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.

  • Spinoff Date for Insurance Auto Auctions, Inc. (IAA) Set for June 28, 2019 / 1:1 Dist. Ratio Confirmed
  • Insurance Auto Business Demands Premium Over Peers With Pure-Play Position & Superior Margin Profile
  • Moody's Re-Rating on KAR Resumed to Stable on Debt Transfer to IAA / Reduces Leverage from 2.6x to 2.2x
  • Potential Divestiture of KAR's AFC (Automotive Finance Corp.) Business Long-Term
  • KAR Enters the ESR Model Portfolio with a +3% Weighting at the End of Today's (June 7) VWAP
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