Orion Office REIT (ONL) : 3-year performance

Orion Office REIT, Inc. acts as a real estate investment trust. It engages in the ownership, acquisition, and management of a diversified portfolio of mission-critical and headquarters office buildings located across the U.S. and leased primarily on a single-tenant net lease basis to creditworthy clients. 

• Sector: Real Estate
• Industry: REIT - Office
• Full Time Employees: 38
• Founded: Nov 12, 2021
• Headquarters: Phoenix, Arizona
• Spinoff from Realty Income (O); Nov 15, 21
• https://www.onlreit.com

 

 

 

Illumina (ILMN) : Board approves spin-off of GRAIL

 Board approves spin-off of GRAIL; to be spun off on June 24 and listed on Nasdaq as "GRAL" 

• "When-issued" trading expected to begin on or about June 12, 2024.
• Record date for distribution of GRAIL shares will be June 13, 2024.
• Distribution date for GRAIL shares anticipated to be June 24, 2024.

N-able Technologies (NABL) completes its spin-off from parent company SolarWinds (SWI)

Open $14.95

Close $12.50

SolarWinds completes spin-off of managed service provider business into N-able 

• SolarWinds and N-able, a provider of cloud-based software solutions for managed service providers, today announced the completion of the previously announced spin-off of the SolarWinds managed service provider ("MSP") business into a standalone, separately-traded public company named N-able.
• Following the separation, which was completed on July 19, N-able will provide cloud-based software solutions for MSPs, enabling them to support digital transformation and growth within small and medium-sized enterprises. SolarWinds will retain its Core IT Management business focused primarily on providing IT infrastructure management software to corporate IT organizations.

Madison Square Garden (NYSE: MSG) split into two companies on April 17, 2020

 On March 31, 2020, The Madison Square Garden Company (NYSE: MSG) split into two independent, publicly-traded companies by way of a tax-free spin-off of its Entertainment business. 

• Madison Square Garden Sports (MSGS): The Sports business will remain in the existing Company, which will be renamed Madison Square Garden Sports Corp and will change its stock ticker from “MSG” to “MSGS” in connection with the separation. 
• Madison Square Garden Entertainment (MSGE): The Entertainment business will be part of a new company that will be named Madison Square Garden Entertainment Corp. at separation, and its common stock would be listed on the NYSE under the symbol “MSGE”.

 

IBM (IBM) to spin off legacy infrastructure management biz

• The move was a continuation of the strategy the company began to put in place when it bought Red Hat in 2018 for  $34 billion. That purchase signaled a shift to a hybrid-cloud vision, where some of your infrastructure lives on-premises and some in the cloud -- with Red Hat helping to manage it all. 

IBM to accelerate hybrid cloud growth strategy and execute spin-off of market-leading managed infrastructure services unit; provides in line Q3 guidance 

Co announces it will accelerate its hybrid cloud growth strategy to drive digital transformations for its clients. Additionally, IBM will separate its Managed Infrastructure Services unit of its Global Technology Services division into a new public company ("NewCo"). This creates two industry-leading companies, each with strategic focus and flexibility to drive client and shareholder value.

The separation is expected to be achieved as a tax-free spin-off to IBM shareholders, and completed by the end of 2021.

The proposed separation is expected to be effected through a pro-rata spin-off to IBM shareowners that will be tax-free for U.S. federal income tax purposes. The transaction is subject to customary closing conditions, including Form 10 registration with the U.S. Securities and Exchange Commission, receipt of a tax opinion from counsel, and final approval by IBM's Board of Directors. The separation is currently expected to be completed by the end of 2021.

Co issues in-line guidance for Q3 (Sep), sees EPS of $2.58 vs. $2.58 S&P Capital IQ Consensus; sees Q3 (Sep) revs of $17.6 bln vs. $17.56 bln S&P Capital IQ Consensus.

-=American Outdoor Brands (AOBC) to change name to Smith & Wesson Brands; to trade under ticker symbol "SWBI"

• Smith & Wesson Brands (SWBI)
• American Outdoor Brands (AOUT)

The decision to split off the firearm business was partly motivated by a changing political climate.


American Outdoor Brands to change name to Smith & Wesson Brands, effective June 1; to trade under ticker symbol "SWBI"

American Outdoor Brands will change its name to Smith & Wesson Brands, effective June 1.

• The name change reflects the company's preparation for the previously announced spin-off of its outdoor products and accessories business as a tax-free stock distribution to its stockholders in late summer 2020, a transaction that would create two independent, publicly traded companies: Smith & Wesson Brands (which would encompass the firearm business) and American Outdoor Brands (which would encompass the outdoor products and accessories business).

The company's common shares will continue to be listed for trading on the Nasdaq Global Select exchange under the new ticker symbol "SWBI" beginning at the market opening on Monday, June 1.

=XPO Logistics (XPO) : CEO seeks to break up company

Late Wednesday, XPO Logistics announced it's undertaking the review to enhance shareholder value. XPO stock continues to trade well below the sum-of-the-parts value and at a big discount to pure-play peers, CEO Bradley Jacobs noted in a statement.

It has not set a timetable for completing the review process.

But the company ruled out selling or spinning off its North American less-than-truckload unit, which is key to XPO Logistics' growth.

In the first nine months of 2019, the segment contributed to 36% of total revenue, up from 34% in the year-ago period. In 2021, company expects it to generate $1 billion in EBIT from the less-than-truckload business.

In February 2019, XPO Logistics warned that its largest customer was downsizing the amount of business it does with XPO. That customer was widely believed to be e-commerce giant Amazon, which is building out its own fleet of delivery vehicles and aircraft. The warning took XPO stock down to a two-month low.

-=Nielsen (NLSN) reported earnings on Thur 7 Nov 19 (b/o)

Nielsen beats by $0.09, reports revs in-line; raises FY19 EPS guidance in-line, reaffirms FY19 revs guidance

Reports Q3 (Sep) earnings of $0.51 per share, $0.09 better than the S&P Capital IQ Consensus of $0.42; revenues rose 1.0% year/year to $1.62 bln vs the $1.61 bln S&P Capital IQ Consensus.

Co issues guidance for FY19, raises EPS guidance to $1.77 to $1.83 from $1.70 to $1.80 vs. $1.77 S&P Capital IQ Consensus; sees FY19 revs of +0.0% yr/yr to +1.5% yr/yr vs. $6.48 bln S&P Capital IQ Consensus.

Nielsen completes strategic review -- confirms plans to split, will reduce quarterly cash dividend payment to $0.06 from $0.35

The co announced the completion of its strategic review and its plan to spin-off the company's Global Connect business, creating two independent, publicly traded companies-the Global Media business and the Global Connect business-each of which will have sharper strategic focus and greater opportunity to leverage its unique competitive advantages. The strategic review was led by James Attwood, Chairman of Nielsen's Board of Directors.

• As Nielsen prepares for the separation, it has been developing fit-for-purpose capital structure targets for both businesses. As part of the separation, the Board of Directors approved a reduction of the dividend, with the goal of strengthening the two prospective balance sheets ahead of the separation and providing added flexibility to invest for growth. Beginning with Nielsen's next dividend payment in December 2019, Nielsen will reduce its quarterly cash dividend payment to $0.06, from $0.35, per ordinary share. The dividend is payable on December 5, 2019, to shareholders of record at the close of business on November 21, 2019.
• The transaction will be in the form of a distribution to Nielsen shareholders of 100% of the shares of a new entity holding the Nielsen Global Connect business, which will generally be intended to qualify as tax-free to Nielsen and its shareholders for U.S. federal income tax purposes. Immediately following the transaction, Nielsen shareholders will own shares of both Nielsen and the new entity holding the Nielsen Global Connect business. In conjunction with the spin, Nielsen Global Connect is expected to raise new debt. It is currently anticipated that substantially all of the proceeds of the new debt will be used for debt reduction at Nielsen.
• Nielsen currently expects the spin-off transaction to be completed in nine to twelve months, subject to certain conditions, including, among others, the receipt of final Board approval, receipt of an opinion from counsel and/or ruling regarding the U.S. federal income tax treatment of the distribution, the effectiveness of a Form 10 registration statement to be filed with the Securities and Exchange Commission (SEC), the approval of Nielsen shareholders and works council consultations.

Kontoor (KTB) : Wrangler, Lee and a spin-off in denim

Sector: Consumer Cyclical
Industry: Apparel Manufacturing
Full Time Employees: 17,000
http://www.kontoorbrands.com

VF Corp. (VF) spun off Kontoor Brands, Inc. (KTB) on May 22, 2019 and regular trading in the shares began the next day.

After trading in the $40 range in when issued trading, Kontoor has fallen consistently since regular way trading began due to classic spin-off selling pressure.

Kontoor Brands is mainly comprised of the Wrangler and Lee denim brands. While these brands are not "hot", they are stable.

Scott Baxter, Kontoor Brands CEO and president, welcome employees at an event to celebrate the new company and it’s Wrangler and Lee brands employees at a BBQ lunch at corporate headquarters on North Elm Street in downtown Greensboro.

For example, revenue only declined by 11% during the Great Financial Recession. Further, denim has staying power. In 50 years, people will still be wearing jeans (although the styles will have changed).

Spin-offs usually unleash entrepreneurial forces as the spin-off is no longer weighed down by the bureaucracy of being part of a larger organization. This often results in the spin-off taking advantage of low hanging fruit that the parent company previously didn't prioritize.

An example of this is that Wrangler jeans are not available in China despite Lee being the leading denim brand in China. This will change in January 2020, when Wrangler will launch in China. Opportunities like this should improve KTB's revenue growth.

The quality of KTB's business is quite high as the business is not capital intensive; CapEx as a percentage of sales was only 0.80% in 2018. Historically, KTB has generated a return on equity of ~20%.

-=Corteva (CTVA) completes separation from DowDuPont (DWDP)

• Similarly, DuPont de Nemours, Inc. ("DuPont"), the premier innovation provider of value-added specialized solutions that transform industries and everyday life, announced its debut as an independent company following the successful separation of its Agriculture Division through the spin-off of Corteva, Inc. ("Corteva"). The company was formerly known as DowDuPont Inc. DuPont common stock begins regular way trading today on the New York Stock Exchange (NYSE) under the ticker symbol "DD."

====Alcon (ALC) is spun off from Novartis (NVS)

Alcon, one of the world’s leading eye-care companies, is being spun off from Swiss drug giant Novartis and will begin trading on the New York Stock Exchange and SIX Swiss Exchange on Tuesday.

The expectation on Wall Street is that Alcon’s American depositary receipts (ticker: ALC) will trade at between $40 and $50 each, but there is some uncertainty about the price. Unlike for most spinoffs of U.S. companies, there has been no so-called when-issued trading in the shares.

Novartis said the spinoff gives it a financial profile close to that of its industry peers, and said it is well-positioned for sustained top- and bottom-line growth. The company plans to improve innovative medicine core margins into the mid-30s by 2022.

Vas Narasimhan, chief executive of Novartis, said: "We continue to reimagine ourselves as a leading medicines company powered by breakthrough medicines, data science and advanced therapy platforms."

Novartis said it plans to continue paying a "strong and growing" annual dividend up from the 2.85 Swiss francs ($2.85) a share paid in 2019, with no adjustments for the Alcon spinoff.

The company said it expects to complete its previously announced share-buyback program of up to $5 billion by the end of the year.

====Gap (GPS) reported earnings on Thur 28 Feb 19 (a/h)

• Gap (GPS) is soaring in after-hours trading on Thursday, following an announcement that it plans to split off Old Navy into a stand-alone company.

Gap beats by $0.03, misses on revs; guides FY19 EPS in-line; plans to separate into two publicly traded companies: Old Navy, and a yet-to-be-named company to include Gap, Athleta, Banana Republic, Intermix and Hill City 

• Reports Q4 (Jan) earnings of $0.72 per share, $0.03 better than the S&P Capital IQ Consensus of $0.69; revenues fell 3.2% year/year to $4.62 bln vs the $4.69 bln S&P Capital IQ Consensus. the company's fourth quarter comparablesales were down 1% compared with a 5% increase last year
  • Old Navy comps were flat
  • Gap comps were negative 5%
  • Banana Republic comps were negative 1%
• Co issues in-line guidance for FY19, sees EPS of $2.40-2.55, excluding non-recurring items, vs. $2.55 S&P Capital IQ Consensus. The company expects comparable sales for fiscal year 2019 to be flat to up slightly.
• GPS also announced plans to separate into two publicly traded companies: Old Navy, and a yet-to-be-named company ("NewCo"), which will consist of the iconic Gap brand, Athleta, Banana Republic, Intermix and Hill City.
• The company announced a plan today to restructure the specialty fleet, including the closure of about 230 Gap specialty stores over the next two years.
• The company estimates an annualized sales loss of approximately $625 million as a result of these store closures. Additionally, the company estimates pre-tax costs associated with these actions to be about $250 million to $300 million, with the majority expected to be cash expenditures. The company estimates that these actions will result in annualized pretax savings of about $90 million.

=GE spins off digital assets to form internet of things company

General Electric announced plans Thursday spin off its GE Digital business and establish an independent Internet of Things company, built around several GE Digital technologies.

GE is simultaneously selling a majority stake in Service Max to private equity shop Silver Lake, the company announced. Service Max is a software business GE Digital acquired for $915 million in November 2016.

"As an independently operated company, our digital business will be best positioned to advance our strategy to focus on our core verticals to deliver greater value for our customers and generate new value for shareholders," GE chairman and CEO Larry Culp said in a statement.

The spin off comes as GE also announced that GE Digital CEO Bill Ruh left the company. GE said it will "conduct an internal and external search to identify the CEO for this new independent company."

GE says more detail about the new internet of things company will be announced in the first quarter of next year. GE says the company will have its a new brand, as well its own equity structure and independent board of directors.

GE shares jumped 10 percent in premarket trading to $7.41 from Wednesday's close of $6.71 a share. The jump came after longtime bearish analyst Stephen Tusa of J.P. Morgan upgraded GE shares to neutral from underweight, saying the embattled industrial giant now has a more "balanced risk reward at current levels."

****

General Electric announces plans to establish a new, independent company focused on building a comprehensive Industrial Internet of Things software portfolio

The company will start with $1.2 billion in annual software revenue and an existing global industrial customer base. The company is intended to be a GE wholly-owned, independently run business with a new brand and identity, its own equity structure, and its own Board of Directors.

• GE Digital CEO, Bill Ruh, has decided to depart GE to pursue other opportunities. The company intends to conduct an internal and external search to identify the CEO for this new independent company. Further details on GE's new IIoT software company will be announced in Q1 2019. This plan is subject to customary regulatory approvals, including information and consultation with employee representatives where required.

****

J.P. Morgan upgraded shares of GE to neutral from underweight. Stephen Tusa, the firm's lead analyst on the stock, says the embattled industrial giant now has a more "balanced risk reward at current levels."

Tusa put out a bearish note on GE in May 2016 when the stock was above $30 that questioned the conglomerate's earnings and cash flow outlook.

-=VF Corp (VFC) to spin off Lee, Wrangler jeans into public company

• The company that owns Lee and Wrangler will spin off its jeans brands into a separate entity as yoga pants and other alternatives shake up the clothing industry.

(Reuters) - VF Corp, one of the world's biggest apparel makers, will spin off Lee and Wrangler jeans into a separate public company, it said on Monday, allowing it to focus on more profitable Vans sneakers and The North Face outdoor wear.

Denims were responsible for more than half of VF's overall profit in 2000, but have since been outpaced by skateboarder favorite Vans, which has driven much of VF's recent growth.

The spin-off will also give VF more flexibility to pursue acquisitions, explore new business areas and focus more on activity-based outdoor products, a business that saw profit jump 15 percent in the year that ended in March.

Earnings from jeans slipped nearly 13 percent in the same period as big outlets including Walmart Inc increasingly stock their own denim brands.

"(Jeans) has been the weak link in the portfolio," Jane Hali, CEO of investment research firm Jane Hali & Associates, said via email. "Now they can concentrate on the outdoor coalition and Vans, a much more unified and strong stable of brands."

VF already sold off apparel brand Nautica last year to focus on faster-growing names. The new VF will have annual revenue of more than $11 billion, compared to just over $2.5 billion for the jeans unit.

The jeans company will focus on maintaining shareholders' dividend, cutting debt and increasing sales in China and other Asian markets. Acquisitions of smaller firms are a longer-term possibility, VF said.

VF will shift base to Denver while the still-to-be-named jeans maker will move to the company's traditional base in Greensboro, North Carolina and be led by Scott Baxter, currently president of VF's Americas West group.

Baxter led VF's jeans business from 2011 to 2015.

VF, which has a market value of about $38 billion, projected a 5-cent hit to current-quarter earnings per share due to the deal.

====Wyndham Worldwide (WYN) discloses expected dividends for two post-spin-off companies

Wyndham Worldwide Corporation was founded in 1990.
Headquarters: Parsippany, New Jersey.
Sector: Consumer Cyclical
Industry: Lodging
Full Time Employees: 39,200
http://www.wyndhamworldwide.com

 

 After the spinoff: Wyndham Hotels & Resorts (WH), Wyndham Destinations(WYND)

Wyndham Worldwide discloses expected dividends for two post-spin-off companies  

Wyndham Hotels & Resorts, Inc. expects to pay a quarterly cash dividend of $0.25 per share beginning in June 2018, and Wyndham Worldwide Corporation, which will be renamed Wyndham Destinations, Inc., expects to pay a quarterly cash dividend of $0.41 per share beginning in June 2018. The dividends, in aggregate, are consistent with Wyndham Worldwide's current quarterly dividend of $0.66 per share.

• Following the spin-off, Wyndham Hotels & Resorts will trade on the New York Stock Exchange under the symbol "WH," and Wyndham Destinations will continue to trade on the New York Stock Exchange under the new symbol "WYND." Wyndham Hotels & Resorts is expected to begin "regular-way" trading on June 1, 2018.

=Delphi Automotive (DLPH) splits into Delphi Technologies & Aptiv (APTV)

Delphi Automotive PLC has completed the spin-off of its Powertrain segment into Delphi Technologies. The $4.5-billion independent spun-off entity has already started trading on the New York Stock Exchange as DLPH. Delphi Automotive, engaged in developing more connected electronics and safety solutions for a wide array of customers across the globe, will now be known as Aptiv (APTV).

Delphi Technologies, with 5,000 engineers, is built on the legacy of dishing out sophisticated propulsion solutions through combustion systems, software and controls and products electrification for customers across the globe. Liam Butterworth, the newly selected chief executive officer of Delphi Technologies, has said, “We are paving the way towards full electrification with our comprehensive technology portfolio, best-in-class cost structure and a balanced geographic manufacturing footprint with 20 manufacturing facilities and 12 technical centers on three continents.”

Delphi Technologies enjoys a balanced revenue mix, robust cost structure and veteran leadership. Also, the company is capable of complying with the strict automotive regulations, pertaining to lowering of the CO2 and other toxic emissions from combustion engines by a considerable amount.

Aptiv is in a position to solve complicated challenges embedded in greener, safer and more connected mode of transportation. The expertise in software and vehicle architecture will aid in automated driving, improved safety, better user experience, and connected services.

Hewlett Packard Enterprise (HPE) completes spinoff

• Hewlett Packard Enterprise (NYSE:HPE) has completed the spinoff of much of its software business, merging it with Britain's Micro Focus (OTC:MCFYY).
• The step marks the end of HPE's unhappy tangle with Autonomy, which it acquired for $11B to transform into an enterprise software leader.
• The ink was barely dry on the much-criticized deal when the company took an $8.8B writedown on it.

  

Lamb Weston (LW) reported earnings Tue 10 Jan 2017 (b/o)

   

• Lamb Weston (LW) was spun-off by Conagra Foods (CAG) as an independent public company on November 10, 2016.
• Lamb Weston supplies frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers, with nearly $3 billion in annual sales.

** charts after earnings **

Lamb Weston beats by $0.07, beats on revs; guides FY17 EPS above consensus, raises sales outlook :

• Reports Q2 (Nov) earnings of $0.63 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.56; revenues rose 6.8% year/year to $790.7 mln vs the $772.1 mln two analyst estimate.
• Volume increased 4 percentage points as productivity programs and strong manufacturing plant performance stretched available capacity, allowing the Company to meet demand growth in both North America and international markets. Price/mix increased 3 percentage points due to pricing actions and favorable product and customer mix.
• Co issues upside guidance for FY17, sees EPS of $2.20-2.28, excluding non-recurring items, vs. $2.11 Capital IQ Consensus Estimate; sees net sales up mid-single digits vs. prior guidance for up low single digits. Co expects Adjusted EBITDA including unconsolidated joint ventures to grow at a mid-teens rate, up from a previous estimate of a high single digit increase, reflecting solid sales growth and savings from supply chain efficiencies, partially offset by lower contribution from equity method investment earnings. Potato costs are expected to remain essentially flat.

Hilton (HLT) spinoffs go live, start trading Wed 1/4/17

Nearly 10 months after announcing plans to spin off its real estate and timeshare businesses, Hilton Worldwide Holdings Inc. (NYSE: HLT) is expected to officially split into three Tuesday.

The transaction will create two new public companies: a real estate investment trust called Park Hotels & Resorts and the timeshare business Hilton Grand Vacations. Shares of both will begin trading Wednesday morning on the New York Stock Exchange. Park will use the ticker “PK” and Hilton Grand Vacations “HGV.”

 

 

Executives and guests of Hilton Grand Vacations (NYSE:HGV) visit the New York Stock Exchange (NYSE) to celebrate their spin-off from Hilton (NYSE:HLT). To mark the occasion President and Chief Executive Officer of Hilton Grand Vacations, Mark Wang, rings the Opening Bell. (Photo Credit: NYSE)

Hilton's board approved the transaction, including a one-for-three stock split, Dec. 5. The split will reduce the number of shares of Hilton stock from 990 million to 330 million; Hilton shareholders will get two shares of Park common stock and one share of Grand Vacations stock for every 10 shares of Hilton stock they own.

The move comes as Hilton takes on a much larger competitor in Marriott International Inc. (NASDAQ: MAR), which completed its merger with Starwood Hotels & Resorts in September. Hilton has about 300,000 rooms in its pipeline and a total of 789,000 rooms open. Marriott has 420,000 rooms in its pipeline and more than 1.1 million rooms open.

Park Hotels & Resorts is taking 69 properties off of Hilton’s hands, including the Hilton McLean Tysons Corner next to Hilton’s headquarters.

Conduent (CNDT) completes its separation from Xerox (XRX)

 

 

Conduent (CNDT) completed its separation from Xerox (XRX) and is now an independent public company trading on the NYSE. Conduent debuts as the world's largest pure-play business process services leader with approximately $6.7 billion in annual revenue, a portfolio of differentiated offerings and a vision focused on technology and innovation to advance the client and constituent experience.