Corporate spinoffs can be done for a number of reasons, but the most common reason is to attempt to unlock shareholder value by simplifying operations. A number of extremely successful companies were once spinoffs. Here’s a look at some spinoffs you may or may not remember.
eBay Inc (NASDAQ: EBAY) spun off Paypal Holdings Inc (NASDAQ: PYPL) in 2015. Since the spinoff, Paypal shares are up 2.1 percent, while eBay stock has surged 20.5 percent.
Energizer Holdings Inc (NYSE: ENR) was spun off from parent company Edgewell Personal Care Co (NYSE: EPC) in 2015. Energizer shares are up 38.3 percent since the split, while Edgewell shares have fallen 22.5 percent.
The Sara Lee Corporation spun off both food business Hillshire Brands (later purchased by Tyson Foods, Inc. (NYSE: TSN)) in 2010 and leather goods maker Coach Inc (NYSE: COH) back in 2000.
McDonald’s Corporation (NYSE: MCD) opted to spin off Chipotle Mexican Grill, Inc. (NYSE: CMG) back in 2006. Chipotle has been one of the hottest stocks in the market in the years since, rising 839.4 percent.
Back in 2012, Kraft, now of Kraft Heinz Co (NASDAQ: KHC), spun off food giant Mondelez International Inc (NASDAQ: MDLZ).
Related Link: Why Mobileye Investors Could Be The Biggest Winners In The Autonomous Auto Race
Ocean Rig UDW Inc. (NASDAQ: ORIG) was a Dry Ships Inc. (NASDAQ: DRYS) spinoff back in 2011. Both stocks have been hammered by the oil market collapse.
Finally, General Motors Company (NYSE: GM) opted to spin off automotive parts maker Delphi Automotive PLC (NYSE: DLPH) back in 1999. Of course, GM later famously declared bankruptcy during the Financial Crisis.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
