The Weekly Wrap-Up provides summaries of recent publications from the Spin-Off Report including links to the full-length research reports. 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.
HIGH-CONVICTION RECOMMENDATIONS (LONG): Vestis Corporation (VSTS)
UPCOMING SPIN-OFFS: General Electric (GE)/Renewable Energy, Baxter International Inc. (BAX)/KidneyCo, Medtronic (MDT)/Patient Monitoring & Respiratory Interventions, 3M Co. (MMM)/Health Care Business, Jacobs Solutions Inc. (J)/Critical Mission Solutions, Western Digital (WDC)/HDD Business, MDU Resources Group (MDU)/Construction Services, *Select Medical Holdings Corp. (SEM) /Concentra Business, Edwards Lifesciences Corp.(EW)/Critical Care Business
*New Entry this Month
RECENT PUBLICATIONS:
Sodexo SA (SW FP) – Comprehensive Report
January 26, 2024
On April 5, 2023, Sodexo SA announced the intention to spin off its benefits and rewards services businesses into a standalone, publicly traded company. The BRS segment has been renamed, Pluxee, and the new publicly traded company will adopt the same corporate moniker. The transaction, which is scheduled to be completed on February 1, 2024, is supported by SW’s founding family’s investment firm, Bellon SA, which expects to remain a long-term shareholder in both post-spin entities. Sodexo will hold a special meeting on January 30, 2024, to formally approve the separation.
Select Medical Holdings Corp. (NYSE: SEM) – ALERT
January 4, 2024
Alert: Select Medical Announces Plan to Spin-Off Concentra Business.
Select Medical Holdings Corp. (NYSE: SEM) has announced that its board of directors “has approved a plan to pursue the separation” of “Concentra Group Holdings”, which controls SEM’s wholly-owned occupational health services business. If completed the separation is expected to be accomplished via a tax-free spin-off of Concentra shares to SEM shareholders in late 2024. SEM has requested a private letter ruling from the IRS in relation to the tax-free status of the potential spin-off.
WK Kellogg Co. (NYSE: KLG) – UPDATE
January 3, 2024
Following KLG’s Recent Share Price Rise, Downgrade WK Kellogg (KLG) to NEUTRAL, Maintain $15 FVE
Following WK Kellogg Co.’s (NYSE: KLG) recent share price increase we now view the risk reward scenario to be more balanced. As such, with approximately 10% upside to our $15 fair value estimate, we downgrade shares of KLG to NEUTRAL (from BUY). Subsequently, WK Kellogg’s share price has rebounded 33% versus a 11.4% increase in the S&P 500 over the same period.
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 Corp. (APG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Carrier Global Corp. (CARR), *Crown Castle Inc. (CCI), Crown Holdings Inc. (CCK), FLEETCOR Technologies, Inc. (FLT), Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK)
*New Entry 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.
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