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:
RECENT PUBLICATIONS:
ALERT: Modine Manufacturing Company (MOD) – February 6, 2026
MOD to Combine its Performance Technologies (PT) Business with Gentherm (THRM) in a Tax-Free Reverse Morris Trust (RMT) targeted for completion in 4Q 2026
UPDATE: Solstice Advanced Materials (SOLS) – February 5, 2026
Downgrade SOLS to NEUTRAL (from BUY) with Shares Trading Roughly In-Line with our FVE of $65 per share
COMPREHENSIVE REPORT: Becton, Dickinson & Company (BDX) – February 2, 2026
On February 5, 2025, Becton, Dickinson and Company (BDX), a global medical technology company headquartered in Franklin Lakes, NJ, announced that its Board had authorized management to pursue the separation of its Biosciences & Diagnostic Solutions (B&DS) business via, among other options, a spin-off, sale or Reverse Morris Trust (RMT) transaction, depending on what avenue was determined would unlock the most value for shareholders. At the time, the company indicated it would specify the transaction’s ultimate form by the end of F2025 and anecdotally aimed to complete any proposed transaction during C2026. Subsequently, on July 14, 2025, BDX announced a definitive agreement to combine its Biosciences & Diagnostic business with Waters Corp. (WAT) in a Reverse Morris Trust (RMT) transaction valued at ~$17.5 billion. As well, BDX will receive a $4 billion cash distribution prior to the transaction’s completion, which is expected to occur in February 2026 as it has received all the regulatory and shareholder approvals necessary to proceed.
Post-spin BDX, which, as a standalone, will be a “pure-play” medical technology company primarily focused on consumables in a $70 billion market that is estimated to have a long-term growth CAGR of ~5%, posted top-line organic growth of ~4% in F2025 and is expected to grow in the “mid-single digits” over the long-term amid the increased focus on its core healthcare provider & patient end markets. On the other hand, New Waters, a scaled life sciences & diagnostics concern, is expected to debut with 2025E sales of ~$6.5 billion and adjusted EBITDA of ~$2.0 billion projected to post compound annual top-line growth in “mid- to high-single digit”.
On a pre-spin basis, while we have been anecdotally positive on the transaction at lower levels we take an initial NEUTRAL stance on pre-spin BDX shares given the implied upside to our $24 fair value estimate. Post spin, while there is no obvious indexation angle embedded in this transaction as both BDX and WAT are included in the S&P 500 index. That said, it seems reasonable to suggest that new Waters could see some initial shareholder-related rotation and investors may take a wait and see approach in regard to initial expectations, the final allocation of shares and the achievability of the company’s medium-term synergy projections. As well, for post-spin BDX, whose stock we perceive to be reactive to small differentials in organic growth the current pocket of below-trend growth due to pronounced weakness in several small areas, may present a variable for nearer-term volatility.
All told, we think new investors are afforded the luxury of awaiting more compelling buying opportunities in both New BDX and New Waters, post-spin. To that end, we will monitor shares of both post-spin companies for potentially attractive entry points.
ALERT: International Paper Company (IP) – January 29, 2026
IP to Split Into Two Geographically Focused Concerns within 12-15 Months; Tax Status is Uncertain
ALERT: Eaton Corporation plc (ETN) – January 26, 2026
ETN to Separate its Mobility Group via a Tax-Free Spin-Off set for Completion in 1Q 2027
Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event
Companies discussed this month: Caesars Entertainment, Inc. (CZR), Coty Inc. (COTY), Genuine Parts Company (GPC), Goodyear Tire & Rubber, Inc. (GT), Luxfer Holdings (LXFR), Matthews International Corp. (MATW), Netgear Inc. (NTGR), PepsiCo, Inc. (PEP), Stanley Black & Decker (SWK), The Cooper Companies (COO)*, The Scotts Miracle-Gro Co. (SMG), Viasat Inc. (VSAT), XPO Inc. (XPO), Terex Corporation (TEX)
*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.
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