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:
UPDATE: Dupont de Nemours (DD) – March 18, 2026
Post-Spin DD Proposes a Reverse Stock Split; Expects to Close the ~$1.8 billion Sale of Aramids on April 1st; Drop Coverage
COMPREHENSIVE REPORT: Aptiv PLC (APTV) – March 13, 2026
In January 2025, Aptiv PLC, a Dublin-based auto supplier, announced its intention to separate its Electrical Distribution Systems (EDS) business into an independent publicly traded company, to be called Versigent, through a tax-free transaction. Shareholders will receive one share of Versigent for every three Aptiv shares held on the record date of March 17, 2026. The spin-off received final board approval on March 5, 2026, with Versigent shares expected to be listed on the New York Stock Exchange (NYSE) under the symbol “VGNT,” with regular-way trading commencing on April 1, 2026. Versigent, headquartered in the United States, will be led by CEO Joseph Liotine, who served as Executive Vice President & President of the EDS business since FY 2024. The separation is expected to simplify Aptiv’s corporate structure and sharpen the company’s focus on high-growth, technology-driven automotive systems, while allowing the EDS (i.e., Versigent) business to pursue its own operating and capital allocation priorities as a standalone manufacturing enterprise. The transaction is expected to improve valuation transparency by addressing the conglomerate discount that has historically been assigned to the consolidated company.
In our view, the separation also serves to improve capital allocation transparency. To that end, Aptiv intends to use ~$1.6 billion in proceeds from the Versigent spin dividend to reduce debt, targeting a gross leverage ratio in the range of 2.0x-2.5x following the transaction. With a strengthened balance sheet and improved free cash flow generation, RemainCo will be positioned to fund organic technology investments, pursue selective bolt-on acquisitions, and return capital to shareholders through a balanced combination of dividends & share repurchases. In contrast, Versigent’s capital allocation priorities as an independent company are expected to focus on operational efficiency, footprint optimization, and cash flow generation.
Further, again, in our view, the transaction addresses the structural conglomerate discount that has historically affected Aptiv’s valuation multiple. Prior to the spin-off, the market, in our estimation, effectively valued the company as a hybrid automotive supplier, blending the high-growth software and computing businesses with the low-margin wiring harness manufacturing segment. By separating the two operations, investors will be able to evaluate each business on its own merits and better focus their own capital allocation. All told, RemainCo becomes a more pure-play advanced automotive technology platform with higher margins, stronger intellectual property positioning, and greater exposure to long-term software-driven automotive trends while Versigent emerges as a scaled global supplier of electrical architecture solutions with stable OEM relationships and a clear pathway to operational margin improvement.
For our part, we value Aptiv on a sum-of-the-parts (SOTP) basis, applying median EV/EBITDA multiples to management’s average FY 2026E guidance. To that end, post-spin Versigent is valued at ~$2.4 billion using a 4x multiple while RemainCo is valued at ~$18.3 billion, using peer-aligned multiples of 10x. Adjusting for net debt, pension liabilities, minority interest and investments results in a combined equity value of ~$20.7 billion, or $97.50 per share, implying ~39% upside from current levels. In effect, Aptiv’s current valuation suggests that investors can acquire the RemainCo advanced mobility technology platform and receive the Versigent spin-off at little to no incremental cost.
UPDATE: Honeywell International Inc. (HON) – March 3, 2026
Close Coverage of HON with Shares Trading Roughly In-Line with our Current Fair Value Estimate (FVE) Following Strong Post-Spin Price Appreciation; Coverage will Resume ahead of the 3Q 2026 Aerospace Separation
UPDATE: Medtronic plc (MDT) – February 26, 2026
MDT Launches its IPO Roadshow for MiniMed Group (i.e., the Diabetes Business); still plans a potential Tax-Free Split Off Later in 2026
Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event
Companies discussed this month: Barrick Mining Corp. (B)*, Caesars Entertainment, Inc. (CZR), Coty Inc. (COTY), Goodyear Tire & Rubber, Inc. (GT), Luxfer Holdings (LXFR), Madison Square Garden Sports Corp. (MSGS)*, 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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