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Tag >> spin-off
Jun 23
2010

Corporate spin-offs increasing

Posted by dbedell in spin-offrestructuringMBO, LBO, IPOdivestituresDealsCash

dbedell

As companies continue with global restructuring, spin-offs are increasingly being used to slim down and focus on central businesses, bring in some capital, and help the individual businesses to build market value separately. Whether through an IPO, an MBO, an LBO or simply by issuing shares to current shareholders, US and global companies are shedding assets left and right.

Lockheed Martin is restructuring to change its focus on long-term growth, and the company is putting some less-strategic units up for sale as part of the process. Most of its Enterprise Integration Group and its Pacific Architects and Engineers unit--both now falling under its Information Systems & Global Services business—will be spun off. In addition, as the firm tightens its focus within the defence sector, the divestitures are also part of a move to comply with recently-drafted Pentagon conflict of interest rules for contractors, according to the company.

Jun 22
2010

Smaller deals for private equity

Posted by dbedell in spin-off, private equity, mergers and acquisitionsmanagement buyoutDealsCash

dbedell

Although many private equity firms are still in sell-off mode—as Marine Cole reported last week —those firms that are buying are doing smaller deals, which could be good news for the many companies looking to shed non-core assets as consolidation continues.

Of the deals being done, US private equity group TPG is the most recent, announcing last Friday that it would purchase UK fashion retailer Republic for £300 million ($445 million). The deal will be financed entirely through equity.





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