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The Weekly Wrap-Up provides a list of upcoming spin-offs and summaries of recent publications. If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas.
UPCOMING U.S. SPIN-OFFS AND EXPECTED COMPLETION DATES:
2025
2026
RECENT PUBLICATIONS:
UPDATE: Holcim AG (HOLN SW) – May 14, 2025
HOLN Shareholders Approve Amrize Spin-Off on-track for June; Dates & WI-Trading Info TBA; Maintain Pre-Spin BUY
On May 14, 2025, shareholders of Holcim AG (HOLN SW), which trades on the SIX Swiss Exchange, overwhelmingly approved the pending tax-free separation (on a one-for-one basis) of its North American business, which will be dubbed Amrize (and trade on the New York Stock Exchange under the ticker AMRZ with a secondary listing on the SIX Swiss Exchange), from its remaining International business, which will maintain the current corporate moniker. The transaction is on-track to be completed in June 2025 although specific dates and so-called “when-issued” trading information has yet to be definitively announced.
Additionally, at the 2025 Annual Meeting, HOLN also approved the previously announced 11% increase in its annual dividend to CHF 3.10 as well as elected Kim Fausing as Chairman of post-spin HOLN.
We maintain our pre-spin BUY recommendation. On a post-spin basis, while we still await indications as to where the individual shares will ultimately begin trading in the so-called “when-issued” market, our initial bias leans toward Amrize (SpinCo), which offers higher growth, better margins, and, in our view, will eventually be added to the S&P 500 Index (potentially boosting demand for the shares).
ALERT: HCI Eyes a Potential Tax-Free Spin-Off of its IT Solutions Business, Exzeo, by Year-End 2025 – May 9, 2025
On May 8, 2025, after the market close, HCI Group (NYSE: HCI), a Florida-based property & casualty (P&C) insurer, announced the potential tax-free spin-off of its IT Solutions business, Exzeo (formally TypTap), from its core insurance operations via a potential tax-free separation that if ultimately enacted would be targeted for completion by the end of 2025, subject to customary conditions, including the filing & effectiveness of a Form 10 filing with the Securities & Exchange Commission.
In terms of valuation, the broader group of property & casualty (P&C) insurers, trade at ~2.5x book value and ~12.5x 2026E EPS while M&A activity in the non-Life Insurance sector, the average purchase multiple has been around ~16.5x in recent years, per Chain Bridge Research. For its own part, HCI, which has seen its share appreciate materially in 2025, have generally traded at a premium to peers. Applying a 12.5x multiple to 2026E EPS yields a preliminary fair value of $181.75 per share
ALERT: MCK Intends to Separate its Medical-Surgical Solutions Business; “Form and Timing” Remain to be Determined – May 9, 2025
On May 8, 2025, McKesson Corp. (NYSE: MCK), a pharmaceutical/medical supply distributor, announced the separation of its Medical-Surgical Solutions segment into an independent company. Management contends the separation will help the remaining company “focus its capital deployment priorities on opportunities that best align with its long-term enterprise strategies” and further invest in higher growth, higher margin opportunities, namely Oncology & Biopharma Solutions. On the other hand, NewCo is expected to be “a differentiated medical surgical supply and solutions company with a compelling leadership position, attractive margins, and potential for growth acceleration across all the alternate sites of care markets”.
The U.S. Pharmaceutical and International segment’s largest competitors, per filings, are Cencora, Inc. (NYSE: COR) and Cardinal Health, Inc. (NYSE: CAH), which trade at ~16.5x 2026E EPS and ~12x 2026E EV/EBITDA. The Prescription Technology Solutions (or RxTS) and Medical -Surgical Solutions businesses compete with a broad range of national & regional players. For its own part, MCK has traded at ~20.5x and ~12.5x forward earnings and EBITDA, respectively, over the last 10-years and ~27.0x & ~12.5x over the last 5-years. Applying a blended multiple of ~20.5x to estimated 2026E EPS of ~$37.15 implies an preliminary per share value of $761.50, 10% above the current share price.
Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event
Companies discussed this month: Albany International (AIN), Alphabet Inc. (GOOG), APi Group (APG), California Resources Corp. (CRC), Caesars Entertainment, Inc. (CZR), Goodyear Tire & Rubber, Inc. (GT), Intel Corporation (INTC), Luxfer Holdings (LXFR), Masimo Corp. (MASI), Matthews International Corp. (MATW), Netgear Inc. (NTGR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), The Scotts Miracle-Gro Co. (SMG)*, TriMas Corporation (TRS), XPO Inc. (XPO)
*added this month
Published monthly, The Spin-Off Calendar provides one-page summaries of every spin-off under coverage from the announcement date, followed by the filing of the Form 10 and continuing 60 days post completion.
Murray Stahl’s commentary on various investing themes and single stock recommendations.
Murray Stahl’s commentary on various investing themes and single stock recommendations in Europe.
Covers mispriced stub securities, tracking stocks and other arbitrage opportunities.
Product Specialist
Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566
