LONDON & NEW YORK -- (BUSINESS WIRE) -- With a +37% return achieved on average two-years post separation / break-up, Corporate Spinoffs are fast moving to the forefront of investment growth strategies used by prominent money managers as a new pure form of index beating value creation.
“Our Spinoff Calendar shows US Spinoff deals are growing remarkably in all sectors”, says Ryan Mendy, co-founder of the world’s leading corporate Spinoff and special situation equity research firms, TSR and TDR.
2014’s deal calendar uncovers a 70% growth over 2013’s Spinoff activity, and beyond the boundaries of Canada and the United States; “the UK, EMEA and Asia-pack Spinoffs will see tremendous growth in activity in the future, matching that of the US”, according Mendy of TSR.
If this morning’s news is anything to go by in London, it proves TSR’s research is spot on, as £37bn FTSE listed Reckitt Benckiser (LON: RB) is considering a Spinoff of its pharmaceutical unit. This is a break-up that TSR analysed and predicted for its notable fund management subscriber base in their 2013 research of “Potential Spinoffs Yet to Happen, M&A and Takeovers”.
“Being circa 10% of sales and trading at 13.7x EV/EBITDA, we believe that a Spinoff of RB’s Pharmaceuticals unit can help the Consumer Staples company re-rate and provide a return of more than 20% for investors in the first year alone. Similar transactions in the past includes that of Bristol-Myers (Biopharmaceutical Products) creating value by separating its holding in Mead Johnson Nutrition Company (Pediatric Nutrition) in 2009-2010”, comments Mendy of TSR.
Announced Spinoffs in the last few weeks for new Investors:
Top global company management are now evidently setting their Board room focus on the break-up valuation and strategies of their currently difficult to value divisions.
To enquire about any of TSR’s top recommendations or future Spinoff analysis, go to: www.spinoffreport.com