Investing

13 Spin-Offs Set to Radically Change Top Companies in 2017 and 2018

Pfizer

Pfizer Inc. (NYSE: PFE) already spun off Zoetis in recent years, and now the company is reportedly eyeing a spin-off of its consumer health business. This deal is not yet set in stone, so if it gets announced soon it may take several quarters to actually occur. This non-prescription and over-the-counter business may be worth as much as $15 billion, according to several published reports. Pfizer has a market cap of $215 billion, and despite being within 2% of their 52-week high of $36.78, its shares are still 15% under former all-time highs.

ServiceMaster

ServiceMaster Global Holdings Inc. (NYSE: SERV) is a $6 billion residential and commercial services company. It has looked at spinning out the American Home Shield home-warranty business from its franchise ServiceMaster line and from the Terminix line. This may not occur until late in 2018, and since this has been intended since summer of 2017, there can be no assurances that the spin-off occurs. With its shares at $45.00, it is still about 7% down from a 52-week high. This stock is still up more than 100% from its mid-2014 listing.

And Others

Recent spin-offs and divesting transactions have been seen as follows:

  • Huntsman Corp. (NYSE: HUN) launched its Venator Materials PLC (NYSE: VNTR) over the summer in a more than $400 million IPO. Huntsman shares were trading closer to $25.00 in mid-August and were last seen hitting a 52-week high of $29.60.
  • MetLife Inc. (NYSE: MET) completed its Brighthouse Financial Inc. (NYSE: BHF) spin-off over the summer, carving out a $7 billion or so value for shareholders to allow a life insurance and annuity spin-off and hopefully to keep MetLife off of the too-big to fail or systemically important financial institution list. MetLife shares were close to $50 at the start of July and just hit $54.00.

Again, there are no assurances that these spin-offs actually will happen. They are also subject to change at any moment, and some of the added value gains in some of these companies already may have become fully reflective.


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